The housing market rebound is gaining strength, foreclosure sales are decreasing,existing home sales in July and August were the best they have been since May of 2010,and the Commerce Department reported that 2.3% increase in August represents a seasonally adjusted rate of 750,000 housing starts.The National Association of Home Builders (NAHB) said that builders confidence is higher than it has been since March 2006.With interest rates at an all time low and demand growing faster than supply that can only mean that the prices are going to start to climb.Buyers who were waiting for the price of houses to bottom out are now realizing that we have already hit bottom and are now rebounding back up.That is good news for the sellers,NAHB thinks that these positive trends have helped bolster the optimism that our housing recovery will endure and improve.
That is six quarters in a row where sales of both new and existing home sales are running ahead of the sales from the same time period from the previous year,a complete recovery may be one or two years away but the bottom is behind us. As usual some markets are better than others. The Associated General Contractors said that out of the largest 337 metropolitan areas 123 showed an increase in construction employment,49 were stagnant and the rest showed a decrease,the three areas that had the largest increase were San Diego, Denver and Corpus Christi, TX.
The Employment Development Department said that the 9% increase in construction employment in August represents 40,800 jobs.
The Federal Bureau of Labor Statistics said that the construction industry is still in the top ten high demand occupations,the outlook for the next decade is way above average with the number of jobs and the pay scale of those jobs.
What has happened with the Keystone XL project, six months ago is was in the news every day,I have not seen it on the front page of the newspaper for a month.with the price of a gallon of gas less than three dollars fifty cents and the price of oil less than eighty five dollars a barrel nobody is in a hurry to start building the pipeline and since this is a presidential election year their is not going to be any important legislation passed,the House , Senate and President are to busy trying to keep their day jobs to sit down and come to terms on this project. A 1,400 mile pipeline is not an easy project to start their are a minimum of 12 government agencies that need to sign off on it,and that is just in this country dont forget Canada needs to do the same thing,so i do not see it getting started anytime soon.
Caterpillar has came out and forecasts that their sales will be around 90 billion dollars a year starting in 2015,with profits about 15 dollars per share,some of that optimism comes from the announcement from China,the Chinese government came out last week and announced that they were going to upgrade,modernize and repair all of their interstate highways and airports over the next decade,best estimates is that will exceed one trillion dollars.Caterpillar has had two quarters in a row with huge increases over the same time period last year,both Europe and North America exceeding 20 percent increases.Both John Deere and Komatsu have seen their sales increase in the last two quarters even though neither one was as much as Caterpillar both were happy with their sales.
With the price of gold still above $1,500 per ounce the mining industry is seeing a huge increase in employment,when the price of gold was $700 an ounce or less their were plenty of mines that were forced to close because their extraction cost were more than the price of the gold,a lot of those mines are reopening now.With modern equipment and recovery processes that recover over 97% it is now extremely profitable to reopen some of those mine that were shut down.
Verisk Crime Analytical has start a national information bank to share information with the insurance carriers,policy holders,and law enforcement to lessen the thefts of heavy equipment and increase the recovery of equipment that has been stolen.
The city of Saskatton Canada opened a heavy equipment training program in partnership with the local community college after one year they had graduated 8 students and 7 of them went to work,considering that the Black Sands of Alberta needs 75,000 employees that does not seem like a big deal,any one that has working papers in Canada can find a job if their willing to live where the jobs are.