In July, construction spending fell to its lowest level in 17 years, according to the US Commerce Department.

And that is great news because it means that the supply of available housing will not be further expanded, allowing room for more of the foreclosures currently on the market to be purchased.

The real estate market is suffering largely because there is an over-supply of houses due to a vast increase in the number of foreclosures. Because there are so many properties already on the market, buyers are free to demand highly attractive prices since there are so many more pieces of real estate than there are buyers for those properties.

So the fact that construction spending has dropped off very significantly is good for the real estate market, since construction spending fuels the building of new houses which is something that is not necessary in our current over-supplied market.

It’s one more piece of good news about the U.S. real estate market! As always, thanks for reading FreeRealEstateTraining.com.