N. California College of Construction News Blog

See the Difference a Small College can Make!

SEPTEMBER 2012

Posted by nahetsblog on September 27, 2012

Home builder index hits six-year high,confidence among U.S. home builders rose in August to its highest level in the last six years,and is expected to strengthen over the next six months.Wells Fargo and the National Association of Home Builders said the index increased to 40 , it was at 37 that is the highest it has been since June 2006.Builders reported seeing the best sales since May 2006. This trend will help bolster the optimism that the U.S. housing recovery will endure.Sales of both new and previously occupied homes are running ahead of 2011,the median price has inched up slowly probably because the inventory of foreclosuers have eased.Even though new home sales represent only 20 percent of all home sales they have a huge effect on the economy.

According to the Bureau of Labor Statistics local construction continues to grow,San Diego county and Sacremento are the two areas that have seen the largest increase in construction employment.Most of the construction employment in San Diego county is publically funded currently their is 2 high schools,library and one billion dollars in highway public transportation going on.

Fewer homes means the prices are going up,with interest rates lower than they have been in decades hopefully the rebound will start to speed up.The national median existing home price is now over 187,000 dollars,that is an increase of 9.5 percent over the median price from one year ago.With a little raise in the median their are buyers now who were waiting for the price to bottom out before they made their purchase,this is good news for the sellers.

Caterpillar has forcasts their sales by 2015 to hit 90 billion dollars with profits around 15 dollars per share. Some of that optimism comes from the announcement from China that they were going to repair and update all of their interstate highways and airports over the next ten years and that modernization would cost a trillion dollars,that is a lot of work , that is 20 times more than it cost to build the the Three Gorges Dam and that project was the largest man made project ever built by man.

The construction equipment shipments to southeast Asia is by U.S. factories has gone up each of the last three years,the second quarter of 2012 was 7% above the same period last year.

Associated General Contractors announced that out of the 337 largest metropolitan areas 123 of them increased construction employment , 49 of them remained stagnant,this is according to Federal Employment Data,the three areas that had the largest increase were Denver,San Diego and Corpus Christi,TX.The Employment Development Department stated that their were 40,800 jobs added in July and August 2012

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