Construction spending declined 13.2 percent in November 2009 compared with November 2008, and 0.6 percent compared with October 2009, according to a report from the U.S. Dept. of Commerce.  Residential construction declined 1.6 percent to a seasonally adjusted annual rate of $250.7 billion in November, compared with $254.9 billion in October.

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San Francisco Chronicle – Sales of new homes plunged unexpectedly last month to the lowest level since April, a sign the housing market recovery will be rocky and heavily dependent on the generosity of Uncle Sam.

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Sales of newly built, single-family homes declined 3.6 percent in September to a seasonally adjusted annual rate of 402,000 units, according to estimates released jointly by the U.S. Census Bureau and the Dept. of Housing and Urban Development (HUD). Sales in September 2009 also were down 7.8 percent compared with September 2008.

The median sales price of newly built homes was $204,800 in September; the average sales price was $282,600. The seasonally adjusted estimate of new houses for sale at the end of September was 251,000 units, representing a 7.5-months’ supply.

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New-home construction declined in September, as homebuilders pulled fewer permits for single-family homes, according to statistics compiled by the Construction Industry Research Board (CIRB). Homebuilders pulled permits for 2,150 single-family homes in September, a decline of 2 percent compared with August and a 12 percent decline compared with September 2008.

CIRB also announced it is revising its forecast downward from 39,500 units to 37,700 units in 2009, the lowest total on record.

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CAR - Builder confidence in the market for newly built, single-family homes declined one point to 18 in October, according to the latest National Association of Home Builders/Wells Fargo Housing Market Index (HMI).

NAHB attributes the decline to the quickly approaching deadline of the Federal First-time Home Buyer Tax Credit. Industry groups, including NAR and C.A.R., are calling on their members to contact their congressional representatives and urge them to extend this home-buying incentive.

“This is the first time since November of 2008 that all three component indexes of the HMI have declined,” noted NAHB Chief Economist David Crowe. “Clearly, builders are experiencing the effects of the expiring tax credit on their sales activity, since it would be virtually impossible at this point to complete a new home sale in time to take advantage of that buyer incentive before Nov. 30.”

Crowe also noted that immediate congressional action to extend the tax credit and expand its eligibility beyond first-time buyers could substantially boost sales activity. “In a special questions section of our HMI survey, 85 percent of respondents said that expansion of the tax credit would have a positive impact on their sales,” he said. “That would amount to a very effective stimulus to housing demand and a needed boost to the overall economy.”

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