Shannon Construction Company’s Post

Despite high interest rates and inflation concerns, the construction backlog increased in June to 8.4 months, a 1.2% increase from May. All of the Construction Confidence Index readings (sales, staffing, profit margins) remained above 50, which indicates expectations of growth over the next 6 months.

Growth in construction costs have been notified leading to a normalcy in the market. This sector has seen a deceleration over the past few years specially since pandemic days. It is a sigh of relief for the market participants to finally get out of the harrowing shadows of the Covid-days. CoreLogic‘s Cordell Construction Cost Index (CCCI), which tracks the cost of building a new dwelling, recorded a growth rate of 0.8% over the three months December, 20 basis points below the pre-Covid decade average of 1.2%. The annual growth for 2023 came in at 2.9%, below the pre-Covid decade average of 4.0%. A representative of CoreLogic noted these latest figures suggest re-acceleration is more a return to trend rather than a new surge in construction costs. “While up over the quarter, the annual change in residential construction costs continued to ease as larger quarterly increases fell out of the annual calculation,” she said. “This suggests that growth in construction costs have normalised after recording a recent peak of 11.9% over the 12 months to December 2022, albeit at a higher level.” #ConstructionCosts #MarketNormalcy #Deceleration #PandemicImpact #ResidentialConstruction #EconomicTrends #MarketUpdate #BuildingIndustry #GrowthNormalization #ConstructionSector #EconomicRecovery

Growth in construction costs have been notified leading to a normalcy in the market. This sector has seen a deceleration over the past few years specially since pandemic days. It is a sigh of relief for the market participants to finally get out of the harrowing shadows of the covid-days. CoreLogic‘s Cordell Construction Cost Index (CCCI), which tracks the cost of building a new dwelling, recorded a growth rate of 0.8% over the three months December, 20 basis points below the pre-Covid decade average of 1.2%. The annual growth for 2023 came in at 2.9%, below the pre-Covid decade average of 4.0%. A representative of CoreLogic noted these latest figures suggest re-acceleration is more a return to trend rather than a new surge in construction costs. “While up over the quarter, the annual change in residential construction costs continued to ease as larger quarterly increases fell out of the annual calculation,” she said. “This suggests that growth in construction costs have normalised after recording a recent peak of 11.9% over the 12 months to December 2022, albeit at a higher level.” #ConstructionCosts #MarketNormalcy #Deceleration #PandemicImpact #ResidentialConstruction #EconomicTrends #MarketUpdate #BuildingIndustry #GrowthNormalization #ConstructionSector #EconomicRecovery

Construction output to recover from 2025 but only slowly, forecasts Construction Products Association. The Construction Products Association’s Spring forecasts anticipate a construction recession this year followed by a slow recovery in 2025-26. After a weak start to the year following heavy rainfall in the first quarter of the year, and private house building and private housing repair, maintenance and improvement (rm&i) in the midst of subdued activity after the sharp contractions in the second half of last year, output is forecast to fall by 2.2% this year before a broader... Check out the full story 👉 https://zurl.co/Y2Tm (Builders' Merchants News) #construction #buildersmerchants

𝗜𝗡𝗦𝗜𝗚𝗛𝗧 > Despite house prices fluctuating quite significantly since 2000, due to the impacts of interest rates and net migration demand, construction cost inflation has in fact been relatively stable ... keeping within a band of about 3% and 6%. The significant rise in construction costs we then saw post-COVID has now eased back to 5%. And at the same time, house prices have started to rise, narrowing the gap between the cost to build and the cost to buy - which is good news for the sector. Digest this and more demand-related insights in the current issue of our Pulse Report: https://lnkd.in/gVn5c-Aj #nzarchitecture #buildingproducts #constructioninsights

Both the Housing Market Index and the Consumer Confidence Index have improved since the start of 2024, indicating a returned confidence among builders and the public in the near-term housing market. Read our U.S. and Canada Building Products & Materials Report to learn more: http://ms.spr.ly/6046YpSd0 #MergersAndAcquisitions #Construction #HousingMarket

Builders are facing increasing challenges due to rising costs, with almost 44% expecting lower profits this year. Despite many builders putting up their prices, the increase in material costs over the past quarter meant that 65% of respondents reported needing to further increase their rates. The overall outlook remains concerning, with deep-rooted economic issues needing attention. Click here to read more: https://bit.ly/3JOjnIP #RisingCosts #ConstructionIndustry #UKConstructionNews

This growth not only reflects the enduring strength and flexibility of builders in navigating the shifting tides of the market but also signals a robust demand for housing. The resilience of the construction sector, despite challenges, underscores its critical role in economic recovery and stability. #RealEstateTrends #ConstructionInsights #MarketOptimism #EconomicRecovery #HousingStarts

July 1 - The Wall Street Journal - "Spending on construction in the U.S. declined in May to a seasonally adjusted annual rate of $2.14 trillion, surprising economists who had expected an increase. At 0.1%, the decline from April was small, but it was the first month-over-month decrease since October 2022, according to the Census Bureau data released Monday. Though spending remains near all-time highs, the decline suggests that high interest rates are beginning to take a toll on the construction industry."