Housing Expansion On Hold but Resuming Early in 2011

Reed Construction Data expects recent months' rise in pending home sales and mortgage applications to accelerate if Congress enacts the Senate tax compromise

Home affordability is at a near record high level and still rising but home sales, remodeling and starts are limited by recession level buyer confidence and widespread restraints on credit. Nonetheless, pending home sales have improved significantly over the last four months and applications for purchase mortgages has risen strongly in the last two months. Together with the huge fiscal stimulus included in the tax compromise plan likely to be enacted next week, the residential construction recovery should resume early in 2011.

(More at ReedConstructionData.com . . . )