Homebuilding firms throughout the country are likely to see a marginal rise in activity during 2012, as a report states the outlook for the industry calls for cautious optimism.
A report by Standard & Poor's Ratings Services indicates credit available to construction companies should remain steady this year. However, S&P noted that credit could dwindle at the onset of any weak economic data.
"We currently anticipate a modest uptick this year and more robust growth in 2013," S&P credit analyst Susan Madison said in a statement. "Despite the rough road behind us, we believe single-family housing starts and sales have likely troughed, and most rated builders are gaining market share - albeit of a much smaller pie."
Overall, most of the 16 major housing construction firms discussed in the report are expected to see modest profits in 2012. The projection for the general housing market, though, remains muted.
Many experts who analyze real estate records affirm home prices should remain significantly low during the year. While these affordable properties may appeal to many investors, numerous consumers nationwide still appear hesitant to enter the market, as economic conditions remain uneven.