Some good news, and a possible clearing of the dark clouds looming over the new home construction industry, was revealed in a statistical report issued today. According to Realtor Magazine, construction spending rose 2.7 percent in April among residential, government buildings, and industrial segments.
Ian Shepherdson, chief U.S. economist at High Frequency Economics, expressed his opinion on the rise, stating that “the government tax credits drove residential increases and nonresidential activity is unreliable. We expect a downward revision next month.”
Despite the down-played pessimism of Shepherdson, Houston’s new home builders are forecasting a positive shift. Luxury home builder and Former CEO of Toll Brothers Robert Toll said, “It appears our business has finally emerged from the tunnel and into a bit of daylight.”
Only time will tell, but all eyes will me on construction statistics over the next few months as builders anticipate the summer housing rush to be the “new beginning” they have been waiting for since the housing crisis began.