The Pioneer Press has this update on the Twin Cities. "With 'For sale' signs crowding the landscape, area home builders continue to tap the brakes on new construction. Permits for residential construction in the Twin Cities dropped a hefty 15 percent through the first six months of the year compared with the same period in 2005. The number of permits issued last month dipped to 763, down 31 percent from June 2005."

"The downshift was expected and may continue. 'There are still people in the marketplace but not what we'd seen in the last few years,' said Curt Swanson, president of the Builders Association of the Twin Cities."

"'People are more conservative,' said Barry White, a VP for McDonald Construction. Customers used to take out home equity loans to begin building their new home before they'd put their current home on the market. Now White estimates that one in four customers has a contingency that building won't start until they have buyers for their existing home."

"'We have an oversupply of land and lots and an oversupply of homes both new and existing and something's got to give,' said John Lockner, a Realtor in Woodbury."

"While permits are down, the number of planned units is off even more sharply. Fewer multifamily units, such as condos and town homes, account for the change."

"Pulte Homes has shifted its focus to single family homes, said Mike DeVoe, a vice president. 'We'd rather sell a $500,000 single family home than have to sell three or four town homes to achieve the same revenue objective,' he said."

"Buyers of these homes have the edge when negotiating for price cuts and amenities. 'Now is the time the buyer should be out in the marketplace because they're in the driver's seat and they can take advantage of the incentives,' Lockner said."