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Another hint of good news for home builders: 65 percent more permits were issued in February than a year ago, the Builders Association of the Twin Cities said Monday. There were 177 permits granted last month for building 202 units, compared with 107 permits for 118 units the previous February.

Still, the number of permits doesn't come close to the amounts during the building bubble. Five years ago, 542 permits were pulled for a total of 872 units in February. And they're lower than they've been since April, when permits for 118 units were issued.

Home building does more to stimulate the economy than existing home sales. When homes are built, factory workers who process timber and building materials, and construction workers who pour foundation and frame houses are called back to work.

Home buyers are expected to put on the snow boots and start house-hunting earlier this year because the home buying tax credits expire April 30.

"Anecdotal reports from builders confirm that there are area families out looking and buying new homes in the past two months," association President Gary Aulik said in a statement. The spring Parade of Homes, which brings traffic into home models, begins Friday. With fewer than 60 days until the home-buying incentives end, some builders, such as Lennar Homes, are also offering special financing and other incentives to get house hunters to act.

Some economists fear the tax credits are forcing anyone considering a move in 2010 to search now, rather than during the traditionally busy summer months, and that sales will drop yet again later this year. This spells trouble for builders, who need the backlog of new homes to be sold before building can return to normal levels. Persistent foreclosures and short sales present a problem also, because deal seekers may find prices more attractive in these market segments.

"The good news is we believe the declines in construction activity are truly behind us and expect building activity to gain some ground in 2010," according to a recent housing report from Wells Fargo economists Mark Vitner and Adam York. "Unfortunately, growth may be somewhat tepid at first. We expect single-family activity to claw its way back to about a half-million units this year." The economists also cite homebuilder sentiment that's still well below normal.

Kara McGuire • 612-673-7293