The Twin Cities economy remains one of the most stable in the United States, according to a new study by Metrostudy's Twin Cities division.

The firm, which provides market information to the housing industry, noted that Twin Cities businesses have added 93,600 new jobs since 2003, and that the area has sustained an unemployment rate below 5 percent for the last four years.

However, the study also found both the existing and new home markets remain sluggish. Active listings of existing homes remained high (34,042) at the end of the third quarter, increasing 9.9 percent from a year earlier. But sales declined 16.8 percent and pending sales declined 24 percent. Median sales prices have started to drop, as there are approximately 10 homes on the market for every buyer, the study said.

There were 2,062 new home starts for the third quarter, down 29 percent from a year ago.

Ryan Jones, director of Metrostudy's Twin Cities division said, "This year clearly has been challenging for everyone in the housing industry, and early indications are that 2008 could be just as difficult. "

At the end of the third quarter, there were 37,633 vacant developed lots on the market, a 52.2-month supply. And although the total number of vacant developed lots has declined, the study said that the number of months of supply has increased for the 13th consecutive quarter.

Source: http://www.bizjournals.com/twincities/stories/2007/10/29/daily15.html