Twin Cities home builders continued to see a decline in construction activity in 2007, according to a recent report from the Builders Association of the Twin Cities.

The metro area had 8,961 permits in 2007, down from 12,644 units permitted in 2006. Builders again experienced a regional market decline throughout 2007.

Despite the continuing market decline, the National Association of Home Builders remains confident about the future, said association President KC Chermak.

"The immediate market conditions are challenging, but our industry is in a much better position than even just a year ago," Chermak said. "Much of our speculative inventory is reduced, activity is proceeding as appropriate, and industry expectations are tempered from our peak years."

Minneapolis led the metro in building activity in 2007, with 1,012 units permitted. Woodbury came in second with 459, followed by St. Paul with 409, Lakeville with 374 and St. Paul Park with 308.