Responding to the announcement by Israel that it would build 1,500 new homes in East Jerusalem, US State Department spokeswoman on Wednesday said continued settlement activity is not conducive to creating a positive environment for the Israel-Palestinian peace negotiations. \"At no time in the course of pursuing negotiations toward a two-state solution have we condoned settlement activity or East Jerusalem construction,\" said department spokeswoman Jennifer Psaki during a briefing. \"The reason why it is so important for both parties to continue, to proceed (with negotiations) -- and they have committed to a nine-month timeline of commitment -- is to resolve these outstanding issues.\" The talks have been under way for approximately three months. Secretary of State John Kerry has expressed his concerns with settlements and construction in East Jerusalem many times in the past to Israeli Prime Minister Benjamin Netanyahu, \"and I am sure he will in the future, as well,\" Psaki said. \"But the reason why we want to have talks, and the reason why it is so important they move forward, is to resolve these types of issues.