“February’s activity suggests that while new-home builders remain intent on reducing speculative inventories, there remains a positive demand for custom-built homes and build jobs,” said HBA Executive Vice President/CEO Tim Underwood. “February’s increase is an indication that consumers are continuing to enter the Kansas City new-home market.”

Underwood also pointed toward the reduction in new-home inventory in February as sign that the local housing market is heading in the right direction. According to the Kansas City Regional Association of Realtors, new-home listings fell by 166 units from January, the largest monthly decline since last June. A total of 4,435 new homes were listed for sale at the end of February, the lowest month-end total since August 2004.

“ The steady decline in inventory is a very strong indication that the market is moving forward,” Underwood said. “The inventory numbers dispel the myth that sellers are far outnumbering buyers for new homes. Buyers are continuing to see value for new homes, and we likely look back at this spring and summer as the peak of the market in terms of inventory, competitive prices and low mortgage rates favoring consumers. As inventories continue to fall and demand increases, we expect to see prices rise and choices decline.”

February was another strong month for multifamily starts as well with an additional 447 units permitted. A total of 789 multifamily homes have been permitted so far this year, bringing the total number of single-family and multifamily homes permitted during January and February to 1,264. That marks a 31 percent increase from the same period a year ago.

“ While we certainly expect the multifamily numbers to balance out over the long term, the trend toward new multifamily construction should remain strong,” Underwood said. “Rental and for-sale multifamily homes are a growing lifestyle choice for many households and are certainly in demand to address the growing housing affordability challenges faced by the metropolitan region.”

Kansas City, Mo., led the list of top-permitting cities through February with 121 single-family homes permitted. Olathe ranked second with 55 units, followed by Raymore with 29 and Lenexa with 26. Rounding out the top ten were Blue Springs with 23; Kansas City, Kan./Wyandotte County, 21; Overland Park, 20; Shawnee, 18; Lee’s Summit, 15; and Platte County, 14.

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.