U.S. Construction Market Annualized Spend Rate at $851.6 Billion in September

According to the U.S. Census Bureau of the Department of Commerce, U.S. construction spending during September 2012 was estimated at a seasonally adjusted annual rate of $851.6 billion, 0.6 percent (±2.1%) above the revised August estimate of $846.2 billion. The September figure is 7.8 percent (±2.1%) above the September 2011 estimate of $790.3 billion.

During the first 9 months of this year, construction spending amounted to $624.8 billion, 8.9 percent (±1.3%) above the $573.7 billion for the same period in 2011.

Private Construction

Spending on private construction was at a seasonally adjusted annual rate of $580.5 billion, 1.3 percent (±1.3%) above the revised August estimate of $572.8 billion. Residential construction was at a seasonally adjusted annual rate of $285.9 billion in September, 2.8 percent (±1.3%) above the revised August estimate of $278.0 billion. Nonresidential construction was at a seasonally adjusted annual rate of $294.6 billion in September, 0.1 percent (±1.3%)* below the revised August estimate of $294.8 billion.

Public Construction

In September, the estimated seasonally adjusted annual rate of public construction spending was $271.1 billion, 0.8 percent (±3.1%) below the revised August estimate of $273.4 billion. Educational construction was at a seasonally adjusted annual rate of $66.7 billion, 0.8 percent (±3.6%) below the revised August estimate of $67.2 billion. Highway construction was at a seasonally adjusted annual rate of $78.4 billion, 1.6 percent (±7.4%)* below the revised August estimate of $79.6 billion.

Escalante Golf Unveils New Master-plan for Florida's Black Diamond Development

Black Diamon Quarry Course

Escalante Golf, owner-operator of the exclusive Black Diamond golf club, recently unveiled a new multi-million dollar master-plan for the iconic golf course development. Located about 75 miles north of Tampa, Black Diamond is highlighted by the famed Tom Fazio-designed Quarry Course.

In concert with Black Diamond's 25th anniversary, the master-plan features a major clubhouse redesign; numerous golf course enhancements including bunker renovations, course lengthening and amenity upgrades; and new residential products and memberships.

"Our goal is to build on Black Diamond's world-class reputation to ensure the club's long-term sustainability and exclusivity," says David McDonald, president of Escalante Golf. "The comprehensive master-plan demonstrates a continuing commitment to our existing members, and is a point of pride and emphasis in attracting new members and residents who share our vision and values."

Phase one begins this month with extensive clubhouse renovations. The new interior design was crafted by nationally recognized, Club Design Associates and features upgrades to the dining facilities, boardrooms, outdoor patios, flooring, furniture and mechanical systems. The second phase will focus on the golf shop, retail environment and locker rooms.

To further elevate the Black Diamond experience, golf course architect David Whelchel will work closely with Escalante and Black Diamond to identify opportunities to lengthen and modernize the golf courses.

Meanwhile, in another sign of a rebounding Florida real estate market, Black Diamond Real Estate was beginning construction on the community's first "show" home called The Augusta. Overlooking the fourth hole on the Highlands Course, the architecturally appealing and energy efficient home marks a new era of home building inside the private gates.

Black Diamond's new 2,800-square-foot model home features two master suites, a guest bedroom, three baths, study, extended lanai, family organization area, and several flex options.  According to Black Diamond officials, delivery of the Augusta show home is scheduled on or around December 15 in time for the 2013 season.

Also in the works at are Golf Cottage designs starting at 1,900 square feet, and Village Homes starting at 2,200 square feet.  Construction of these models is scheduled for late fall.  Three best in class builders are also available for design and construction of custom homes on available lots

57,000 U.S. Foreclosures Completed in September, Says CoreLogic

According to CoreLogic's latest National Foreclosure Report for September, there were 57,000 completed foreclosures in the U.S. in September 2012, down from 83,000 in September 2011 and 59,000 in

August 2012. Prior to the decline in the housing market in 2007, completed foreclosures averaged 21,000 per month between 2000 and 2006. Completed foreclosures are an indication of the total number of homes actually lost to foreclosure. Since the financial crisis began in September 2008, there have been approximately 3.9 million completed foreclosures across the country.

Approximately 1.4 million homes, or 3.3 percent of all homes with a mortgage, were in the national foreclosure inventory as of September 2012 compared to 1.5 million, or 3.5 percent, in September 2011. Month-over-month, the national foreclosure inventory was down 1.1 percent from August 2012 to September 2012. The foreclosure inventory is the share of all mortgaged homes in any stage of the foreclosure process.

"The continuing downward trend in foreclosures along with a gradual clearing of the shadow inventory are signs of stabilization and improvement in the housing market," said Anand Nallathambi, president and CEO of CoreLogic. "Increasingly improving market conditions and industry and government policy are allowing distressed homeowners to pursue refinancing, loan modifications or short sales rather than foreclosures."

"Homes lost to foreclosure in September 2012 are down 50 percent since the peak month in September 2010 and 22 percent less than the beginning of the year," said Mark Fleming, chief economist for CoreLogic. "While there is significant progress to be made before returning to pre-crisis levels, the trend is in the right direction as short sales, up 27 percent year over year in August, continue to gain popularity."

Highlights as of September 2012 include:

• The five states with the highest number of completed foreclosures for the 12 months ending in September 2012 were: California (108,000), Florida (92,000), Texas (59,000), Georgia (55,000) and Michigan (51,000). These five states account for 47.7 percent of all completed foreclosures nationally.

• The five states with the lowest number of completed foreclosures for the 12 months ending in September 2012 were: South Dakota (20), District of Columbia (58), Hawaii (436), North Dakota (583) and Maine (625).

• The five states with the highest foreclosure inventory as a percentage of all mortgaged homes were: Florida (11.5 percent), New Jersey (7.3 percent), New York (5.3 percent), Illinois (5.2 percent) and Nevada (4.9 percent).

• The five states with the lowest foreclosure inventory as a percentage of all mortgaged homes were: Wyoming (0.5 percent), Alaska (0.7 percent), North Dakota (0.7 percent), Nebraska (0.9 percent) and South Dakota (1.1 percent).

Russia's Commercial Real Estate Market Reviving Slowly

Without citing specific figures, the Voice of Russia states the commercial real estate market in the country is slowly reviving but has a long way to go.  Office space, especially, is in demand but supply is low.

CBRE Russia predicts the market should begin recovery by the end of this year following a sharp economic downturn in the country.

Knight Frank forecasts office rents will begin to rise by the end of this year due to limited delivery of new space.

The Voice of Russia notes the commercial real estate market was among those hit particularly hard by the 2008 world financial crisis,

Growth prospects in Russia  are "significantly impeded by uncertainty surrounding the European debt crisis worries, with investors clearly focusing on prime property and risk avoidance," the Voice of Russia reports.

"Along with this trend, the volume of transactions on the commercial real estate market in the UK and Germany this year far exceeds that of other European states."

The Voice of Russia concedes  "the country's office space segment can hardly be called a 'safe haven' due to its ever-present cloud of volatility. At times of economic instability, foreign companies strive to shed all non-core operations, making it unrealistic to expect any sizable expansion of their presence in the country."

The Voice of Russia cites CBRE data that show in 2012 only 20% of investments in Russian commercial real estate market came from abroad, while 80% has a domestic origin.

Valentin Gavrilov, research director at CBRE Russia, told the Voice of Russia by  phone, "The main problems are volatility and lack of investment grade assets in Russia currently. One emerging trend that we see is related to foreign investors' readiness to enter projects on early stages of construction. They are trying to develop high quality properties themselves, rather than search for completed assets."

Gavrilov added, "The process allows us to speculate about a transition that is presently happening in this segment. As a result, foreign players become more accustomed to building high grade objects themselves with the aim to either sell them later on, or keep them for investment purposes."