Research Firm Predicts New Home Construction to Rebound in 2010
October 15, 2009 by Carl Martens
Filed under Market Updates
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Housing market research firm Metrostudy predicts a 37.9 percent decline in 2009 housing starts to a total of 562,000, but a steady increase in starts during 2010.
“Homebuilders are still challenged by economic conditions, and also by the lack of credit from banks, but there are some positive trends,” said Brad Hunter, Metrostudy’s chief economist and national director of consulting.
Most builders’ new home inventory is now under control. The past few months have been a time for builders to look internally and “trim the fat” so to speak. With most builders having things under control they can now again start to look towards future projects.
Whether the $8,000 tax credit is extended or not we should see a rebound in new home construction in 2010.
