Chicago, IL (PRWEB) December 03, 2013
Peoples Home Equity sees the construction spending release released by the The U.S. Census Bureau on Monday, December 2nd as uplifting for the housing market.
Yesterday’s construction spending was constructive for real estate as recent weakness has been shown in pending home sales, existing home sales, and mortgage applications. While a mortgage slowdown may be occurring over the past couple weeks, Peoples Home equity sees the new report give a positive vibe that the recent slowdown is just seasonal and not permanent.
The construction spending announcement is important for the housing market because it represents “work done on new structures or improvements to existing structures for private and public sectors each month in the United States” as stated by TradingEconomics.com. The reported posted yesterday was carried more weight than usual because it was both a September & October duel release. The U.S. Census Bureau was unable to announce September construction spending in October due to the government shutdown.
While the spending report has only been positive for only 6 of 10 months this year, the total percentage change is positive for the year. Construction spending is up 5% more over the past 10 months of 2013 than it was for the same period for 2012. Most of the declining months such as March, June, and September only saw small declines of -0.09%, -0.04%, and -0.30% in spending.
As construction spending continues to progress during the housing recovery, prospective home buyers can expect more housing inventory on the market soon. This increase in supply will better match the current demand for housing and ease prices. In anticipation of more housing inventory Peoples Home Equity encourages individuals to get approved for a mortgage now. Having an approved line of credit lets an applicant know how much he or she can spend on a home. In addition, sellers will take the applicant seriously has they will show during the bidding process their purchasing power to buy the home immediately.
Contact a Peoples Home Equity loan officer today at: (855)-897-0300