Residential construction activity in the Twin Cities was stagnant in August.
Homebuilders pulled more just 10 permits more in August than they did during the same month last year, for a total of 256. But the number of units permitted and the dollar value of those permits were both down on a year-over-year basis, reversing a recent trend. Both of those metrics had been tracking up in the previous three months.
Homebuilding activity for the first eight months of the year were also lower than the same period last year, with permits down 8 percent.
Potential buyers are showing greater interest in new homes, but remain reluctant to put their own homes up for sale in a weak market, said Rich Riemersma, president of the Builders Association of the Twin Cities.
"So I think that's where things are still in a bit of a holding pattern," he said.
Riemersma said new construction is stagnating and he does not expect to see much improvement in the third and fourth quarters of the year.