The chief economist for the National Association of Home Builders sees a lot to like in current conditions in the building industry.

In a report issued July 11, David Crowe says that increased construction spending and rising home prices are a “bright spot in [an] otherwise lackluster economic environment” and that the rebound in the housing industry that began in 2012 seems to be continuing into 2013.

Among the factors Crowe cites:

• Total spending on residential construction rose to a seasonally adjusted annual rate of $328.6 billion in May, the highest pace in almost five years. Total spending was 1.2% above April’s total and 22% more than a year ago.
• Spending on new single-family houses rose to an annual rate of $166.3 billion, which Crowe says is the highest since August 2008.
• Spending for remodeling increased to an annual rate of $124.2 billion in May, 1.9% more than April and 7% more than a year ago. (This is still below the spending rate for the first quarter of 2012.)
• Data from the Census Bureau and the Department of Housing and Urban Development indicates that the number of newly built single-family homes sold in May rose 2.1% over April to an annually adjusted rate of 476,000.

July’s NAHB/First American Improving Markets Index dropped to 255 from the 263 registered in June. Even so, Crowe notes that improving markets account for more than 70% of all metropolitan areas that are tracked.

“Supporting new home sales are continued low interest rates for new construction,” Crowe writes. “For example, in May the Federal Housing Finance Agency reported the average contract rate for newly built homes was 3.41%, the lowest rate since February.”

Home prices also went up in April for the 15th consecutive month, Crowe says. That’s helping to generate more state and local property-tax collections, which totaled $478 billion from the middle of 2012 to the first quarter of 2013.

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