Thursday, January 24, 2008

New Construction Down Considerably in the Twin Cities North Metro!

A 25% nationwide drop in construction was announced last week by the National Association of home builders. But as all real estate is local, what does that mean to those of us living and working in the Twin Cities? Are the numbers the same? Better? Worse?

The answer is, it all depends on your location!

The Builders Association of the Twin Cities
(BATC) issued a press release stating that there were 8.961 units permitted in 2007, down from 12,644 in 2006. This translates to a 29% decrease metro wide during the past year. Additional statistics are available showing building permits issued since 2005. Looking at the communities throughout Anoka County and the Forest Lake school district the numbers are significantly lower in most communities.

There were a few surprises but overall and not surprising. The big story is which communities have seen the lowest downturn in new home construction. Forest Lake has faired well with only a 40% decrease in construction. No doubt due to the Summerfield Development off of Highway 97.

Isanti having a big drop off in construction of -89% is not too surprising as it is in the outlying northern perimeter of the metro, Maplewood (-79%) and Stillwater (-89%) however are a different story. Both of these areas while more centrally located with higher demand have less space for big developments. Stillwater focus included more upscale high priced homes which haven’t faired in this changed market.

Similarily, most Ham Lake (-68%) new homes are well into the $400,000 price range. That in combination with being over 30 minutes from either downtown can be a reason for the higher than average building permit fall off. Andover (-62%) having some lower price point homes may have helped its percentage a bit.

Both Blaine (-54%) and Lino Lakes (-54%) are within that magic 30 minute drive time to the downtowns which maybe one reason that the drop off isn’t as bad as communities to the north. Both communities have a wide range of price options for new construction homes as well.

The good news in the sea of negative numbers is the gains for the City of St. Paul. With a whopping +21% increase since 2005, St. Paul has bragging rights.

Once again, the real estate mantra, Location, Location, Location, comes into play.

If you are buying, selling or relocating to Minnesota and need help from a professional Realtor, give me a call or visit my website for a FREE Relocation Packet. I specialize in acreage and lakeshore properties in the north and east Twin Cities metro area including Ham Lake, Lino Lakes and all communities in the Forest Lake School District! Serving Anoka, Chisago, Ramsey and Washington Counties in Minnesota.

Copyright 2008 Teri Eckholm