Along with the number of new-homes sold, the second month of 2013 saw an increase in the amount spent on construction across America. As the national economy continues to strengthen with support from low mortgage records a bolstering housing market, future months may continue to bring about positive changes.
A recent report from the U.S. Department of Commerce detailed figures seen in construction spending during February were 1.2 percent above the preceding month's totals. During the recent month, spending on construction was estimated at a seasonally adjusted annual rate of $885.1 billion, exhibiting substantial improvement over January's total of $874.8 billion.
Year-over-year, the figures may be even better. The amount of money spent on building during February was reportedly almost 8 percent more than the entirety of funds spent during the same month in 2012. The first two months of 2013 combined saw around $120.1 billion spent on new construction, which marked a level more than 6 percent above the total of money spent on building in both January and February of 2012.
Substantial changes seen in residential spending
According to the Commerce Department, February saw private residential construction spending at a seasonally adjusted annual rate of $303.4 billion, which was an improvement of over 2 percent from January's estimate of almost $297 billion. Figures recorded for public residential construction were reportedly seen at high levels, although lower than in recent months. February's total was about $6.2 billion, showing a monthly drop of around 5 percent and an annual decline of about 12 percent.
Sales of new-homes jump significantly
The changes seen in residential construction may have had a related positive affect on the number of residential sales in February. Property data reported by the U.S. Department of Housing detailed that during the month, the amount of new single-family homes sold exhibited a year-over-year increase of more than 12 percent. Although February saw an annual gain, the seasonally adjusted annual rate of 411,000 sales was below that recorded during January.
"The February decline is a readjustment to the unusually high numbers that we saw in January, and we are still in line with our forecast for 2013," said David Crowe, chief economist National Association of Home Builders. "This is the kind of modest but steady growth we are expecting to see throughout the year as the economy and job market continue to improve, but constraints on borrower credit, higher building material prices and a limited supply of labor and buildable lots hold back a more robust recovery."
The recent developments may again be seen nationwide in coming months if gradual growth continues to be observed in mortgage lending and housing construction.