New construction for single family up

Local homebuilding activity dipped in October with fewer planned housing units in the pipeline, but some pockets of the metro are showing signs of a strong rebound in single-family construction.

The Keystone Report, which tracks permit activity in the 13-county metro area, shows that Twin Cities municipalities issued 368 residential building permits for 445 housing units in October. October 2008 saw 267 permits for 711 housing units.

One of the bright spots was Shakopee, which led the metro area with 53 permits for 55 units. In October, Shakopee’s single-family construction activity was up fivefold compared with October 2008, when it produced 11 permits for 11 new housing units.

Shakopee’s year-to-date numbers through October — 263 permits for 280 housing units with a total value of $55.97 million — are roughly three times as much activity as last year (87 permits, 96 units, $5.6 million total value through October), according to the Keystone data.

“When you begin to see things improving, it is generally a few more places this month, a few more places next month,” said Elliot Eisenberg, senior economist for the National Association of Home Builders. “That is what we are seeing in the Twin Cities.”

Blaine (30 permits, 47 units), Woodbury (23 permits, 40 units), Maple Grove (26 permits, 26 units) and Lakeville (20 permits, 20 units) rounded out the top five. Year-to-date numbers are down sharply in Minneapolis, St. Paul, Edina, and Plymouth, among other cities, according to Keystone.

When new construction is up, historically we see an upswing in existing home prices. The last quater was good for the twin cities area, home prices rose 3.5%.

What does this mean for you? If you are a seller and are moving up in price, now is the time to get your existing home sold so that you can benefit from the % increases in value,in a more exspensive home. If you are a first time buyer, the time is now when there are so many good deals out there and programs in financing that can help you get the home you desire.

I am always available for consultations, call Madonna 651-270-2939