New statistics from the Builders Association of the Twin Cities indicate home construction has picked up over the summer. After bottoming out at record lows in 2008 and 2009, builders and city planners are cautiously optimistic about the wave of new home construction that has been occuring over the summer.

The Builders Associations reports that Blaine was the leader in the number of building permits issued for July with 28. Maple Grove was next with 26, followed by Woodbury with 17, Hugo had 14, and Shakopee approved 12. In July, the total number of units for each of those cities was Blaine with 28, then Maple Grove with 27, Woodbury was next with 25, Hugo produced 21, and Shakopee was the same at 12.

For the entirety of 2010 through July, Maple Grove issued 160 permits, followed by Blaine with 153, Shakopee had 126, Woodbury approved 98, and Lakeville had 85. Oakdale, Woodbury, Cottage Grove and Forest Lake have already issued more permits in the first seven months of this year than in all of 2009.

The hammers and nails have been flying in Woodbury and Hugo. Woodbury leads the Twin Cities metro area in terms of planned units for 2010, in addition to the valuation of permits issued. Through the end of July, Woodbury approved 98 permits for 373 units valued at $49.8 million. In 2009, 255 units were approved.

Though this is a documentable improvement, it is unlikely that new home construction will ever return to the boom years the Twin Cities saw during the last two decades, during which Woodbury saw more than 1,600 new units each year.

July residential building activity in the Twin Cities was down slightly compared to the same month last year, according to the Builders Association of the Twin Cities

Twin Cities builders were granted 230 permits in July 2010, down from 238 in July 2009. The number of permitted housing units in the metro area also fell to 265, down from 269. July building activity was also down compared to June, when builders received 246 units for 341 housing units.

Blaine led the Twin Cities area in building activity in July. The city had 28 units permitted. Builders like Norton Homes Inc. are constructing brand new homes in highly-demanded developments like Legacy Creek and Blaine Haven.

Maple Grove came in second, with 27 units. Woodbury, Hugo and Savage complete the top five.

Twin Cities pending home sales fell steeply in May, according to new data from the Minneapolis Area Association of Realtors. The drop was expected after the expiration of the federal home buyer tax credit.

Signed purchase agreement for pending home sales plummeted in May by nearly 25% compared to May of last year. There were 3,910 signed agreements last month, compared to 5,183 signed purchase agreements in May 2009.

Closed sales are up, but that’s because buyers who signed purchase agreements in time to qualify for the tax credits must close on the sale by June 30 in order to qualify for the $8,000 federal first time home buyer tax credit.

The Twin Cities median home price last month was $175,000. That is a 6.1% increase compared to last May. That was the fifth consecutive month of year over year gains. However, the slowing of pending sales and demand could continue, which may bring that price down.

On the other hand, potential Twin Cities home buyers should realize that interest rates are still at historic lows. And real estate prices are still down significantly compared to the top of the bubble, meaning there are some great housing deals out there.

Additionally, though the summer selling season might have slowed, 2010 is shaping up to be the best year since 2007 for homebuilders in the Twin Cities. During the first five months of the year, builders received 1,249 permits for 2,159 residential housing units in the Twin Cities metro area, according to numbers released at the end of May by the Builders Association of the Twin Cities.

Maple Grove issues 30 permits in May, Shakopee issues 26, and Blaine was next with 22 permits. Rounding out the top five communities were Prior Lake with 18 and Lakeville and Hudson, Wis. tied with 16 each.

Now is a good time for people who want to custom-built homes like the ones constructed by Norton Custom Homes. Construction costs currently are about 15% lower than two years ago. Again, interest rates are at historic lows. Need more incentives to build this year? There are various tax credits for “green” construction projects which could be included with your new home’s plans.