New Construction Unexpectedly Picks Up In US
A sign that the housing market may be making positive steps towards getting out of debt, Bloomberg is reporting that construction spending has actually picked up in the United States.
The latest word is:
Spending on U.S. construction projects unexpectedly rose in November as work on schools, power plants and factories helped overcome cutbacks in homebuilding.
The 0.1 percent increase followed a 0.4 percent drop the prior month that was smaller than previously reported, the Commerce Department said today in Washington.
The report showed private homebuilding fell by the most in more than five years, a sign the glut of unsold properties will delay a housing recovery until at least mid-2008. Commercial and government projects showed gains that help ease concern that economic growth stalled last quarter, economists said.
If the market continues to gain in this area, chances are high that home values may actually stabilize. Usually new home construction signifies a pickup in the housing market.
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