Since reaching a low of 219 units permitted in May, home-building activity has posted a 39 percent gain. While new-home permits remain off from a year ago by a little more than one third, the rise in construction coupled with continuing falling inventories have home builders encouraged.

“ The combination of rising new-home permits and declining inventories are exactly what we need to see right now,” said HBA Executive Vice President/CEO Tim Underwood. “The third element the housing market needs to boost the recovery is for buyers to enter the market in greater numbers. Savvy consumers are already benefitting from competitive prices, low mortgage rates and the new first-time homebuyer tax credit now available.”

Underwood pointed toward two recent reports that show new-home inventories continuing to fall. Statistics from the Kansas City Regional Association of Realtors showed new-home listings fell 3 percent to 3,636 homes in August, the lowest monthly inventory level since November 2002. Local housing research firm LandMarketing put the number of finished unoccupied homes at their lowest level since May 2005.

“ The good news is that the housing market for the first time in a long time is making positive strides forward,” Underwood said. “While there is certainly a long way to go, the case can be made that the new-home market recovery locally is underway.”

With much concern directed this week at Wall Street, Underwood said it is too early to gauge what if any impact this week’s turmoil in the stock market and global credit crunch will have on local homebuyers.

“ Historically the decision for a consumer to buy a home is influenced by their personal situation including their family needs, job security and resources,” Underwood said. “Forecasts are calling for the metro Kansas City job picture to improve in the year ahead. That will have a more immediate impact on new-home sales than any changes in the stock market or worldwide finances.”

Kansas City, Mo., led the list of top-permitting cities through August with 535 single-family home starts. Olathe ranked second with 286 units, followed by Overland Park with 124. Lee’s Summit and Kansas City, Kan./Wyandotte County were tied for fourth with 113 units. Rounding out the top ten were unincorporated Platte County with 91 units; Blue Springs, 89; Shawnee, 83; Independence, 82; and Raymore, 74.

The Home Builders Association of Greater Kansas City (HBA) is the voice of the housing industry and the source for housing information. Comprising more than 1,000 member companies, the HBA represents an industry that contributes more than $2.5 billion to the Kansas City economy and supports more than 36,000 jobs in the Greater Kansas City metropolitan area.