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.

It seems like every week, mortgage interest rates are pushed to a new low. Last week, interest rates of 4.54% for a 30-year fixed loan were reported, the lowest since since Freddie Mac began tracking rates in 1971. This week the trend continues.

Mortgage rates are now at probably at their lowest level in at least 60 years. Freddie Mac said Thursday that the average 30-year fixed-rate mortgage was 4.49%, offering the most attractive opportunity for those who qualify to refinance or purchase a home. 15-year fixed-rate loan average l3.9%, the lowest on record. It is the sixth time in seven weeks that interest rates have reached a new average record low.

The last time home loan rates were lower was during the 1950s, when most mortgages lasted just 20 or 25 years.

So why have sales of previously occupied homes been sinking? A variety of reasons may be keeping people from house hunting. Many home buyers already took the plunge into the housing marking when the federal government was offering $8,000 first time home buyer rebates. Some potential borrowers don’t have the income or down payment to buy. And for home owners, refinancing is difficult because so many mortgages are now under water.

Are you one of the lucky ones with a secure job and a ready down-payment? Twin Cities home builders like Norton Homes are striking great deals with would-be home owners.

Mortgage rates fell for the second straight week to the lowest point in 50 years. However, many people either don’t qualify for new mortgages or aren’t looking for a home because they already took advantage of low rates and a tax credit earlier this year.

Mortgage company Freddie Mac reported Thursday that the average interest rate on a 30-year fixed mortgage dropped to 4.57% this week. That’s down from the previous record low of 4.58% set last week. It’s the lowest since Freddie Mac began tracking rates in 1971. The last time rates were lower was in the 1950s.

Low rates have yet to fuel home sales. The housing market has slowed since federal tax credits for homebuyers expired on April 30th. Mortgage rates have hovered near record lows for a while, so most people who can afford to buy homes or qualify to refinance their loans have already done so.

Rates on 15-year fixed-rate mortgages increased to an average of 4.07%, up from 4.04% last week. That was the lowest on records dating to September 1991. Rates on five-year adjustable-rate mortgages averaged 3.75%, down from 3.79% a week earlier. That was also the lowest on Freddie Mac’s records, which date back only to January 2005.

Thinking of buying a new home? Though the first time home buyer credit has expired, interest rates are low and home builders like Norton Homes are making incredible deals available to potential home owners.

Another series of real estate reports show that there is both good news and bad news for Twin Cities home buyers and sellers.

Good news! According to the monthly Case-Shiller survey, home prices in the metro area during April were 9.5% higher than April 2009. That’s much better than the 3.8% increase recorded for the national average. For the 20 metro areas Case-Shiller tracked, the Minneapolis market’s year-over-year gain in home prices was topped only by San Francisco, whose price index rose 18%, and San Diego, where home prices rose 11.7%.

The increases in sale prices are likely the result of a spike in home sales triggered by the federal housing tax credit, which ended in April. April results from the Minneapolis Area Association of Realtors showed the median home sale was $169,800. MAAR has since reported the Twin Cities median home sales price rose 6.1% from May 2009 to $175,000 in May 2010, with some of those sales having trickled over from when the tax credit was still available.

More good news? RealtyTrac reports that sales of foreclosure homes in the Twin Cities have gone down. Foreclosures represented about one in five home sales in the Twin Cities that month. Those homes sold for an average of about 23% less than those not in the foreclosure process. Foreclosure sales in Minnesota have actually declined 17% for the first quarter of 2010 compared with the same period a year ago. Across the U.S., foreclosure homes accounted for 31% of all residential sales in the first quarter of 2010.

Now for some bad news. A Commerce Department report shows that Americans were far less likely to buy new homes in May after the government stopped offering the homebuyer tax credit. Sales of new homes fell 33% to a seasonally adjusted annual sales pace of 300,000. That was the lowest in the 47 years records have been kept. Sales of new homes have now sunk 78% from their peak five years ago.

Possibly more bad news. Sales of existing homes dipped nationally, too. Sales of pre-existing homes fell 2.2% in May from April to a seasonally adjusted annual rate of 5.66 million, according to the National Association of Realtors. Specific statistics for the Twin Cities have not yet been released.

Because all of these reports are for May and April, it could be deceiving for June statistics. The Twin Cities real estate market has been doing better than average when compared to national figures. Additionally, interest rates that were already low have dropped further – to the lowest rates in more than 50 years! As a result of the low rates, mortgage applications increased nearly 9% this week compared to last week, according to the Mortgage Bankers Association.

With the low interest rates and the abundance of affordable real estate available, now may be a great time to buy a first home! Though sales made now no longer qualify for the federal first time home buyer credit, there are still many buyer incentives available to people seeking a home in Minneapolis, St. Paul, and the surrounding Twin Cities!

Do you have your first home and seek the next step up? Great Twin Cities Home Builders are ready to build a home in great developments like Legacy Creek and Blaine Haven.