Some people might consider 13 to be unlucky, but for homebuyers in the Twin Cities, the number 13 brings some very positive omens.  That’s because 13 is the rank occupied by the Minneapolis-St.Paul-Bloomington metro in the Builder Market Health Index compiled by Builder magazine and Hanley Wood Market Intelligence.

“Now that the housing recovery is nearly upon us – most economists expect a full-fledged recovery to begin this year – it’s time to figure out which markets will be the front-runners,” wrote Boyce Thompson of Builder. “Green shoots may be sprouting in markets throughout the country, but which markets will flower first That's the question we attempt to answer with the Builder Market Health Index.”

The Twin Cities scores a solid Market Health Indicator of 37.0 in this annual list of the nation’s 20 healthiest housing markets, which analyzes data such as household formations, resale values, and job and income growth. It was one of only two Midwest markets included on the Top 20 list.  (The other, Des Moines, ranked 20th.)

One of the strongest indicators is the 56% increase in new-home building permits projected for the Twin Cities in 2010. A total of 7,539 permits is forecast for this year, compared to 7,539 recorded in 2009.

Describing the positive outlook for Minneapolis, Builder pointed to some strong fundamentals for the region’s housing market:

…Its unemployment rate at the end of 2009, 8.34%, was well below the national average. That's due in part to the region's slow population growth. Resale home prices, which dropped 8.5% last year, are likely to fall another 5% this year, not bad on a national scale. In the meantime, the market has started to add jobs again, which should continue in 2010. There was a 21% increase in single-family permit activity in the fourth quarter that, unfortunately, was offset by a decrease in multifamily permits. Hanley Wood Market Intelligence expects permits to increase 56% in 2010 to 7,539. That would exceed 2008 levels.

The Builder Market Health Index echoes another recent positive forecast for the Twin Cities housing market. At the end of 2009, Metrostudy, a leading national housing research firm, said steady recovery for the region’s new-home market had begun.