iStock_000003214817XSmallMore home builders are putting their nose to the grindstone as they get back to work following the housing crisis. Building permits are finally being pulled once again, especially as foreclosures continue to decline in many real estate markets around the country. However, a recent report by RealtyTrac found that in some markets, foreclosures and building permits are moving in tandem with one another in one direction: up.

Daren Blomquist, vice president at RealtyTrac, said, “Nationwide and in most markets it appears builders are planning to ramp up activity that will help offset a drop in foreclosure starts, but there are some markets where a jump in both building permits and foreclosure starts in the first quarter indicate the scales will tip more heavily in favor of supply of homes for sale in the coming months—both new homes and foreclosures.”

Recent HUD data included in RealtyTrac’s report showed that the online foreclosure marketplace has seen building permits for single-family homes jump 27% year-over-year during the first quarter of 2013, marking the highest level in five years.

RealtyTrac found that the five states with the most single-family building permits during the first quarter include California, Texas, Florida, North Carolina, and Georgia. All five of these states recorded double-digit gains year-over-year, and each of these states saw a decrease in foreclosures during the same one-year period.

And it’s not just the single-family marketplace that has seen an uptick in building permits pulled. The multifamily market has also seen building permits jump 23%. Incidentally, foreclosure starts have dropped off 27% during the same period, reaching their lowest levels since the second quarter of 2006 before the housing crisis began.