Residential construction not looking up yet

The residential construction industry likely has a long way to go before recovery, construction information provider Reed Construction Data warned. The inventory of existing homes, many of them bank-owned, means less demand for residential construction. An upcoming wave of prime mortgage foreclosures will add to that inventory, which stood at about 10.2 months’ worth in May. But there are a few positive signs for residential construction, including the $8,000 tax credit for first-time homebuyers and increasing interest among young people in buying homes.