Yoram Eliyahu: Construction Confidence Suggests Residential Real Estate Growth

PHILADELPHIA, PA, November 12, 2012 (Press-News.org) While increased foreclosure rates and post-recession economics may have negatively affected the American perception of the current real estate market, new reports indicate that increased construction spending suggests an overall sign of recovery. According to a recent article from The San Francisco Chronicle, "Construction spending climbed in September to the highest level in almost three years, led by a rebound in home building that is rippling through the U.S. economy." Although much of the spending is restricted to projects concerning residential properties, commercial real estate professional Yoram Eliyahu believes this boom in construction could lead to greater confidence in the market.

The article reveals new information recently reported by the U.S. Commerce Department and states, "The 0.6 percent rise brought outlays up to $851.6 billion, the most since October 2009, and followed a revised 0.1 percent August drop that was smaller than previously estimated." Yoram Eliyahu comments, "Although many in the industry have been waiting for these signs of improvement for a long time, I think the consistent caution displayed by professionals in real estate is allowing for a progressive and solid recovery of the housing market."

Still, according to the article, many of these projects concern residential properties, as "home builders are feeling a bit more optimistic about home sales going forward" and hoping to fill in gaps left by the low inventory of new homes within the market. Ryan Wang, an economist at HSBC Securities USA in New York tells The San Francisco Chronicle that "'public construction is probably going to stay subdued' because of fiscal constraints." Regardless of the current trends, Yoram Eliyahu believes that the aftermath of the refreshed construction spending could spur commercial growth in the future.

Yoram Eliyahu comments, "Increased construction in the housing market means increased development of neighborhoods. With new homes being offered either for rentals or for purchase, these new construction spending trends suggest that citizens are looking to invest in making a change in their way of living. As a new wave of homeowners enters the market and contributes to area growth, commercial property developers will have to respond with new projects."

Yoram Eliyahu also comments that both existing and potential upward trends all rest on the overall confidence of consumers, as well as investors. He concludes, "It is important for the real estate industry to avoid the mistakes that were created in the past. Builders and homeowners should make transactions intelligently, and take a steady approach to growth. This will help ensure that positive economic effects remain consistent for years to come."

ABOUT:

A real estate professional, Yoram Eliyahu is considered a leader in commercial property transactions. Through his industry insight and dedication to providing each client with superior customer service, Yoram Eliyahu guides individuals through the buying and selling of properties within the real estate field.

Website: http://yorameliyahu.blogspot.com/