The numbers are in…
Today, the U.S. Census Bureau released construction spending data for October 2009, revealing that the real estate sector dropped 14.4% from October 2008. The residential real estate sector was up 4% which had speculators rallying but spending dropped a staggering 23% from October 2008.
Berkshire Group Realtor, Kristal Kraft said, “construction spending was down this year due to the decrease in demand. The Denver real estate market is seeing a decrease in inventory at the entry level. Now with the expansion of the Tax Credit to non-first time buyers we will see our market expand further, giving the home builders a chance to get back to what they do best, building homes. Denver real estate is on the way to recovery.”
Perhaps Denver is poised for a recovery, but with new home construction suffering so badly, will it drag down or hold back the national housing market as a whole or will the inevitable (yet unpredictable) recovery pull up the new home sector by the scruff?