Compared through the same point a year ago, this year’s building activity is down slightly more than 31 percent. Many builders are looking towards the second half of the year as another phase of the adjustment—a flattening out.
According to statistics compiled by the Keystone Report for the Builders Association of the Twin Cities (BATC), there were a total of 773 units permitted in June 2007, down from 1,176 units permitted in the same month a year ago. Year-to-date activity continues to lag last year, with a total of 4,523 units permitted thus far, down from 6,585 units permitted through the same point last year.
“The next six months will be a telling sign of where our market is headed,” says 2007 BATC President Michael Noonan. “According to a recent forecast by the National Association of Home Builders, the Twin Cities market may begin to flatten out over the remainder of this year, then slightly rebound throughout 2008.”
Noonan cautions against expecting a sudden torrent of activity. Instead, the market will return slowly to healthy and sustainable rates of production.
Minneapolis leads the metro in year-to-date activity with 410 units permitted. St. Paul ranks second with 368 units permitted, followed by Woodbury with 250, Lakeville with 179, and Chaska with 161.
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Source: Builders Association of the Twin Cities