Last month, home building was at its fastest pace in 17 months, rising 15 percent from August and posting the new-home sector’s best pace since April 2010, the Commerce Department reported Wednesday.
In September, single-family home building increased 1.7 percent, while apartment building jumped 53.4 percent.
Builders began work on a seasonally adjusted 658,000 homes in September. While that marks a big improvement, the level still remains only about half of the 1.2 million pace that economists consider healthy for the new-home sector.
Builders are continuing to struggle to compete against heavily discounted foreclosures and short sales that are plaguing many markets.
Building permits, which serve as a measure of future building, dropped 5 percent in September, the Commerce Department reported.
Yet, builders seem to be getting more optimistic that the new-home market is showing signs of improvement. The National Association of Home Builders reported on Tuesday that industry sentiment rose in October to 18, the highest level in over a year. However, overall sentiment about the industry remains low--any reading below 50 indicates negative sentiment about the housing market (a level that hasn’t been reached since April 2006).
Source: “September Home Building Rose 15%, But Permits for Future Homes Fell 5%” Associated Press (Oct. 19, 2011)
Showing posts with label Home building. Show all posts
Showing posts with label Home building. Show all posts
Monday, October 24, 2011
Wednesday, June 8, 2011
Home Remodeling Activity Picks Up
Construction spending in April posted its biggest gain in six months — getting a boost by spending on home remodeling.
While overall construction spending increased only slightly by 0.4 percent in April, the increase in spending on home improvements helped offset some drops in single-family homes and apartment construction, the Commerce Department reported Wednesday.
Construction spending for residential homes increased 3.1 percent in April mostly due to the uptick in home remodeling, the Commerce Department noted. Instead of buying a new home, more people seem to be opting to remodel their existing home. The National Association of Home Builders recently reported that the home remodeling industry saw some of its biggest gains in more than four years. NAHB’s remodeling index recently reached its highest level since the fourth quarter of 2006.
Meanwhile, construction of single-family homes dropped 1 percent in April, the Commerce Department noted. On the other hand, nonresidential construction increased slightly by 0.4 percent for the month, with the increase mostly attributed to a rise in spending on health care, schools, and power plants.
Overall spending on construction projects in April remains far below the $1.5 trillion annual amount that economists consider healthy for the sector. In April, construction projects totaled a seasonally adjusted annual rate of $765 billion — only slightly above the 11-year low reached in February of $761 billion.
"The overall story here is that housing is hugely depressed, but it has probably hit bottom," says Ian Shepherdson, chief U.S. economist at High Frequency Economics.
Source: “Builders Began More Remodeling Projects in April, But Construction Spending Near 11-Year Low,” Associated Press (June 1, 2011) and “Renovations Lift U.S. April Construction Spending,” Reuters
While overall construction spending increased only slightly by 0.4 percent in April, the increase in spending on home improvements helped offset some drops in single-family homes and apartment construction, the Commerce Department reported Wednesday.
Construction spending for residential homes increased 3.1 percent in April mostly due to the uptick in home remodeling, the Commerce Department noted. Instead of buying a new home, more people seem to be opting to remodel their existing home. The National Association of Home Builders recently reported that the home remodeling industry saw some of its biggest gains in more than four years. NAHB’s remodeling index recently reached its highest level since the fourth quarter of 2006.
Meanwhile, construction of single-family homes dropped 1 percent in April, the Commerce Department noted. On the other hand, nonresidential construction increased slightly by 0.4 percent for the month, with the increase mostly attributed to a rise in spending on health care, schools, and power plants.
Overall spending on construction projects in April remains far below the $1.5 trillion annual amount that economists consider healthy for the sector. In April, construction projects totaled a seasonally adjusted annual rate of $765 billion — only slightly above the 11-year low reached in February of $761 billion.
"The overall story here is that housing is hugely depressed, but it has probably hit bottom," says Ian Shepherdson, chief U.S. economist at High Frequency Economics.
Source: “Builders Began More Remodeling Projects in April, But Construction Spending Near 11-Year Low,” Associated Press (June 1, 2011) and “Renovations Lift U.S. April Construction Spending,” Reuters
Wednesday, February 9, 2011
Tips for Choosing Upgrades for a New Home
Most home owners opt to add some upgrades to a new home, which can be rolled into the mortgage opposed to paying for them later on their own. But the choices of what flooring, lighting, or other upgrades to choose can be overwhelming.
Designer Candice Olson, author and host of HGTV's "Candice Tells All," says lighting and extra wiring are key upgrades new home buyers should consider.
"Adding lighting -- or at least the wiring for it -- means you'll be able to have bathroom sconces instead of that one overhead light the builder gives you,” Olson says. “Your flat-screen TV can be where you want it. You'll have a floor outlet for the lamp in middle of the open room. And you won't be ripping out walls later to do all this."
Also, she says home owners shouldn’t forget about the exterior lighting either. "Outside lighting, plus landscaping, will set apart your house from the others in the neighborhood where buyers chose from plans A, B and C," Olson says.
As for flooring, Olson recommends hardwood floors for the main living areas, and cork floors for the basement, since there’s potential for water leakage in basements.
She also says the addition of taller baseboards, chair rails, crown molding, coffered ceilings, built-ins or a banquette also are smart investments for upgrades.
Source: “Decisions, Decisions: Add Character to Your Home With a Few Choice Upgrades,” Chicago Tribune (Feb. 4, 2011) http://www.realtor.org/RMODaily.nsf/pages/News2011020906?OpenDocument
Designer Candice Olson, author and host of HGTV's "Candice Tells All," says lighting and extra wiring are key upgrades new home buyers should consider.
"Adding lighting -- or at least the wiring for it -- means you'll be able to have bathroom sconces instead of that one overhead light the builder gives you,” Olson says. “Your flat-screen TV can be where you want it. You'll have a floor outlet for the lamp in middle of the open room. And you won't be ripping out walls later to do all this."
Also, she says home owners shouldn’t forget about the exterior lighting either. "Outside lighting, plus landscaping, will set apart your house from the others in the neighborhood where buyers chose from plans A, B and C," Olson says.
As for flooring, Olson recommends hardwood floors for the main living areas, and cork floors for the basement, since there’s potential for water leakage in basements.
She also says the addition of taller baseboards, chair rails, crown molding, coffered ceilings, built-ins or a banquette also are smart investments for upgrades.
Source: “Decisions, Decisions: Add Character to Your Home With a Few Choice Upgrades,” Chicago Tribune (Feb. 4, 2011) http://www.realtor.org/RMODaily.nsf/pages/News2011020906?OpenDocument
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