Housing Starts
The Graph of the Week shows the housing starts forecast, in millions, from the November 2009 NABE Outlook. From the survey:
The nascent housing recovery will be uninterrupted and will gather momentum. After a steep and extended four-year decline, housing starts and residential investment will rise sharply in 2010. Housing starts will increase 36 percent and residential investment will grow 9 percent; thus, 2010 will be the first year since 2005 that the housing sector will contribute to overall growth. After bottoming out this year, house prices are slated for a modest gain of 2 percent in 2010. When asked what factors were driving the housing rebound, panelists identified low house prices and interest rates as the two most important determinants. The first-time homebuyer federal tax credit was also seen as important, though less so than affordability. Other factors, including household incomes, confidence levels, and demographics were seen as unimportant, thus far.
NABE member can read the full NABE Outlook here. For the public, a summary is online.
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