Construction Spending Hits a High in Nov

[CADsortaGUY]

Overall construction spending jumped 1.2 percent to a seasonally adjusted annual rate of $934.5 billion in the month from an upwardly revised $923.8 billion in October, the Commerce Department said. Analysts polled by Reuters were expecting a 0.5 percent increase.

I'm suprised dave didn't post this

CkG

 

[dmcowen674]

Originally posted by: CADkindaGUY
Overall construction spending jumped 1.2 percent to a seasonally adjusted annual rate of $934.5 billion in the month from an upwardly revised $923.8 billion in October, the Commerce Department said. Analysts polled by Reuters were expecting a 0.5 percent increase.

I'm suprised dave didn't post this

CkG

I saw it. In fact Donna and I went for a drive around the area to see how the development is going. There are a whole lot more subdivisions put up in just the last month. In fact one of the largest builders in the area (Bowen) just merged with a Re-Max Franchise to work on a project to build the County out in less than 10 years, they expect to build and sell over 200,000 houses themselves.

I'll try and get a count this week but we are way over the 20,000 houses being built around here now, 2 of the subdivisions are well over 4,000 houses each.

Edit: Also the number one item on the front page of the paper is "Where are all the kids going to go to school when they fill these houses up?"

More importanly who is going to ba able to afford the Taxes that will have to go up to handle all these new school kids?

But it's a great thing to put the cart before the horse. Somebody forgot to tell them that. CAD why don't you write them and tell them everything is fine?

 

[DamnDirtyApe]

I want to know where all these people are coming from? I know that here in Toronto we have a massive condo boom underway, while the vacancy rate of rental housing has gone from ~0.1% to 4% over the past two years.

I'm mostly concerned about what will hapened when/if interest rates go up a few points, as people who actually listened to those who said "buy as much house as you can afford" find out that they can't quite afford that mortgage anymore.

 

[dmcowen674]

Originally posted by: DamnDirtyApe
I want to know where all these people are coming from? I know that here in Toronto we have a massive condo boom underway, while the vacancy rate of rental housing has gone from ~0.1% to 4% over the past two years.

I'm mostly concerned about what will hapened when/if interest rates go up a few points, as people who actually listened to those who said "buy as much house as you can afford" find out that they can't quite afford that mortgage anymore.

You're guess is as good as mine. At least 3/4 of these new houses and Apartments built are empty, which is good for the schools for now because they don't have anywhere to put the kids but when they do fill up a whole other story.

We've already got the highest Mortgage defaults and Bankruptcies here, guess it has to go higher.

It's all for and towards the best Economy ever, I just didn't see it last year.

 

[Crimson]

Originally posted by: DamnDirtyApe
I want to know where all these people are coming from? I know that here in Toronto we have a massive condo boom underway, while the vacancy rate of rental housing has gone from ~0.1% to 4% over the past two years.

I'm mostly concerned about what will hapened when/if interest rates go up a few points, as people who actually listened to those who said "buy as much house as you can afford" find out that they can't quite afford that mortgage anymore.

Most mortgages are locked for many years.. 10, 20, 30.. etc.. Mine certainly is. If interest rates jump to 20%, I am still locked in at my rate.