Although we have about 13 months worth homes on the market (our inventory for sale), the Associated Builders and Contractors (ABC) are reporting that they currently have 6 months worth of homes to build (this is their construction backlog). Homes sales have been increasing for 8 straight months. Buyer confidence seems to be improving. But it is still too early to tell if this activity will continue through 2011.
On the other hand, non-residential construction usually trails over all economic recovery by about 12 – 24 months. High vacancy and tight credit are holding the commercial real estate market down. But with residential backlog showing early signs of recovery, non-residential will follow if the trend continues.