Construction spending in the US during April 2017 was estimated at a seasonally adjusted annual rate of US$1,218.5 billion, 1.4 per cent below the revised March estimate of US$1,235.5 billion.
Spending on private construction was at a seasonally adjusted annual rate of US$943.3 billion, 0.7 per cent below the revised March estimate of US$949.7 billion. In April, the estimated seasonally adjusted annual rate of public construction spending was US$275.3 billion, 3.7 per cent below the revised March estimate of US$285.9 billion.
US Construction Spending, House Prices, Price-to-Rent Ratio: April 2017
Private residential spending has been generally increasing, and is still 24 per cent below the bubble peak, said the US Census Bureau Thursday.
National Association of Home Builders analysis of Census Construction Spending data shows that total private residential construction spending stood at a seasonally adjusted annual rate of US$522.2 billion in April, 0.7 per cent lower than upwardly revised March estimates. The private residential construction spending slowed down after a strong start this year. However, it was still 16.7 per cent higher than a year ago.
Non-residential spending is now 3 per cent above the previous peak in January 2008.
Public construction spending is now 15 per cent below the peak in March 2009, and only 4 per cent above the austerity low in February 2014.
On a year-over-year basis, private residential con- struction spending is up 16 per cent. Non-resi- dential spending is up 4 per cent year-over-year. Public spending is down 4 per cent year-over- year.
US HOUSE PRICE APPRECIATION
In March house prices continued to rise with a more moderate annual growth rate.
The Case-Shiller U.S. National Home Price Index, reported Wednesday by S&P Dow Jones Indices, rose at a seasonally adjusted annual growth rate of 3.9 per cent in March, down from 4.9 per cent in February. After reached 8.6 per cent in November 2016, house price appreciation has been decelerating.
The Home Price Index from the Federal Housing Finance Agency (FHFA) rose at a seasonally adjusted annual rate of 7 per cent in March, slower than 10.7 per cent in February, confirming the deceleration in home prices.
US HOUSE PRICE-TO-RENT RATIO
In the Case-Shiller release this week, the seasonally adjusted National Index, was reported as being 2.4 per cent above the previous bubble peak. However, in real terms, the National index is still about 13.8 per cent be- low the bubble peak, said Calculated Risk also Wednesday.
The year-over-year increase in prices is mostly moving sideways now just over 5%. In March, the index was up 5.8% YoY.
In real terms, the National index is back to May 2004 levels, the Composite 20 index is back to March 2004, and the CoreLogic index back to March 2004.