US House Prices, Construction Spending

US House Prices, Construction Spending

The Case-Shiller (CS) National Home Price Index, reported by S&P Dow Jones Indices Wednesday, continued its upward trend in June. The index rose at a 2.5 per cent seasonally adjusted annual pace, faster than the 1.6 per cent in May.

Elsewhere, NAHB analysis of Census Construction Spending data Thursday shows that total private residential construction spending for July registered a seasonally adjusted rate of US$445.5 billion, slightly up from the June downwardly revised estimate.

US House Prices: June 2016

The Case-Shiller (CS) National Home Price Index, reported by S&P Dow Jones Indices, continued its upward trend in June. The index rose at a 2.5 per cent seasonally adjusted annual pace, faster than the 1.6 per cent in May.

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House prices declined at the fastest pace in late 2008 as the housing bust approached its trough. Most of the time between 2007 and 2011, the annual growth rate of home prices remained below zero. It turned negative to positive in 2012 and 2013 as the housing recovery gained momentum. The average annual growth rate of home prices in 2014 and 2015 was 4.9 per cent, faster than the 2.9 per cent average increase in the first half of 2016. The relative stability in the trend recently represents a housing market settling back toward long term sustain- able growth rates.

US Residential Construction Spending: July 2016

NAHB analysis of Census Construction Spending data shows that total private residential construction spending for July registered a seasonally adjusted rate of US$445.5 billion, slightly up from the June downwardly revised estimate.

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The monthly gains are largely attributed to the strong growth of private construction spending on home improvements that rose to a seasonally adjusted annual rate of US$147.5 billion in July, up by 1.5 per cent since last month. Meanwhile, spending on single-family and multifamily both declined in July. Single-family spending edged down to US$238.1 billion in July, down 0.2 per cent over the revised June estimate. After hitting the record-breaking highs earlier this year, multifamily spending decreased to US$59.8 billion, down by 0.6 per cent since June. On an annual basis, however, multifamily spending increased by 19.8 per cent. Single-family spending was also 1.7 per cent higher since July 2015.

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