More positive news were released this week with the results of two
industry surveys: the National
Association of Realtors Existing
Home Sales, and the American
Institute of Architects Consensus
Construction Forecast Survey.
Results from NAR’s survey shows existing home sales rose from 4.70
million in November to 5.28 million in December 2010. However, these
sales are still below December 2009 numbers of 5.44 million. First time
buyers counted for 33 percent of the sales.
Kermit Baker, Hon. AIA, chief economist for AIA says the nonresidential
construction industry will recover in the second half of 2011. “A
consensus 2 percent construction spending decline in 2011 will
hopefully indicate the bottom of the recession trough and set the stage
for a recovery in 2012,” Baker wrote in a recent article about the
In addition, the AIA survey predicts the construction industry to rise
5 percent in 2011, with 2012 of being the year of a stronger recovery.
This news comes when builders are growing concerned about the
possibility of President Obama eliminating the mortgage interest rate
deduction. The Wall Street Journal published a recent article about the
National Association of Home Builders’ plans to fight the elimination.