Residential construction climbs significantly in 2012
An uptick in residential construction in a given metro usually signifies an increasingly optimistic market and growing demand for new homes. Both of these trends typically presage increased home values and sales. Therefore, people considering one of the homes for sale in Philadelphia, PA, may want to take note of the recent surge in residential construction value.
In the first seven months of 2012, the value of residential construction in the City of Brotherly Love was 34 percent higher than the same period in 2011, according to data from McGraw Hill. During that time, spending on residential building climbed to $781.4 million, according to the source, up from $583.1 million in the first seven months of 2011.
Due to this significant increase, total spending on residential and commercial real estate increased 6 percent year-over-year, despite lagging commercial real estate numbers, the Philadelphia Inquirer reports.
This sizable uptick in residential construction value may signal that housing demand and values are in for an increase. The theory was further fleshed out by the most recent release of the Federal Reserve's Beige Book. This document, often called the Summary of Commentary on Current Economic Conditions, is published eight times a year to gather anecdotal information about various parts of the national economy and is one of the most respected measures for keeping tabs on general housing activity.
Echoing the sentiments from McGraw Hill, the Fed's recent report showed positive signs about Philadelphia's residential real estate market. The document's informal analysis revealed that the market for residential real estate in Philadelphia, PA, is improving.
According to the report, residential builders in the area reported a small increase in sales and a larger one in traffic. Perhaps more pertinent for people considering buying one of the houses for sale in this city is the news that residential brokers reported strengthening existing home sales and a dwindling supply of for-sale homes. Overall, the residential sector has seen significant improvement since the release of the last Beige Book, Bloomberg reports - combined with the growth in residential construction, this change could be a good reason to start looking in the City of Brotherly Love for your new home.