Good news for both homebuyers and sellers in National and Sarasota real estate!
This good news has come in the form of increases in residential construction spending, previously-occupied home sales, and pending home sales – all signs that the housing market is recovering from the recession.
Private residential construction spending rose by 1.8% in January, according to the US Census Bureau. Spending on private residential construction projects has increased in each of the last six months — rising to its highest dollar value since January 2010.
Spending on new single-family home construction climbed 2.5% over December 2011. The level of spending activity for single-family homes has increased in each of the last eight months, so on a year-over-year basis this figure has risen by 5.5%. That kind of sustained growth adds to the mounting evidence from other indicators — such as new construction starts and rising home sales — that the housing market is well on the road to a strong recovery.
Multifamily construction spending inched higher by 0.7% in January. While month-to-month variations for this category have been more unpredictable, the level of spending has definitely trended higher over the last year, resulting in a 20% increase versus January 2011. Authorized multifamily (5+ units) building permits stayed above 200,000 annualized units for the third successive month in January, pointing to probable increases in spending over the near term.
Home improvement spending also increased again in January for the sixth consecutive month, rising 1.3% on a month-to-month basis. Tax credits for homeowners greening their homes for energy efficiency, combined with rehab/repair work on distressed properties, have boosted the demand for home improvement spending.
Sales of previously occupied homes in January attained their highest level since May 2010, a month after a federal tax credit expired. And pending home sales increased by 2% month-over-month in January on both a monthly and yearly basis, the National Association of Realtors (NAR) said in a recent report.