The Housing Starts Authorized by Building Permits for Minneapolis / St Paul, MN was published by the US Census Bureau today. As the inventory levels have been dropping in the Twin Cities, naturally the new construction starts are increasing. This is a promising sign for the home building industry as we are at the highest level of housing starts since 2008.
Recently I was asked the question: What percentage of new construction homes sold are published in the MLS? I didn’t have the answer, but with this latest report I took the housing starts year to date in 2012 and compared that with the New Construction solds in the MLS for the same period and same geographic area. The results shocked me a bit.
There are 2,844 single family homes authorized by Building Permits in the Twin Cities year to date for 2012, and only 965 are published on the MLS for the same time period. This is approx 34%.
The Counties used in both data sets are: Anoka, Carver, Chisago, Dakota, Hennepin, Isanti, Pierce, Ramsey, Scot, Sherburne, St Croix, and Washington.
What shocks me about this is that I would have thought the home builders would want this data published to help out Appraisers with comparables which would help out our local market recovery.. With the new rules the appraisers are facing, having more comparables at higher values will allow them to appraise homes higher, they need all the help they can get right now.