October 31, 2007

Though there is currently downward momentum" in the housing market right now, the downswing is poised to move back up again in 2008, economists at a recent National Association of Home Builders forecast conference said.

The economists gave these reasons:

• The overall economy and job growth continue to move ahead at a decent pace;
• Core inflation is under control;
• The late-summer credit crunch in mortage markets is easing; and
• And the supply-demand equation will balance out as builders "whittle down" excess inventory.

"Home sales should bottom out by …

Construction spending in September 2007 was estimated at a seasonally adjusted annual rate of $1,162.8 billion, 0.3% above the revised August estimate. The September figure is 0.8% below the September 2006 estimate.
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During the first nine months of this year, construction spending was $872.2 billion, 3.2% below the same period in 2006.
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Private Construction
Spending on private construction was at a seasonally adjusted annual rate of $869.0 billion, 0.2% below the revised August estimate. Residential construction was at a seasonally adjusted annual rate of $511.4 billion in September, 1.4% below the revised August estimate. Nonresidential construction was at a seasonally adjusted annual rate of $357.7 billion in September, 1.5% above the revised August …