February’s increase marked the first month-to-month gain in new-home starts since July. While the rate of new-home construction in the metro remains lower than normal for this time of year, the good news is that builders are continuing to focus on reducing speculative inventories, according to HBA Executive Vice President/CEO Tim Underwood.

“Like much of the nation, our local housing industry is adjusting to higher than normal levels of inventory,” Underwood said. “The good news is that Kansas City remains in a much better position than other parts of country, with encouraging signs that consumers are ready to take advantage of low mortgage rates and other very favorable conditions for buying a new home.”

Underwood pointed toward February gains in both existing home sales and existing home inventory as signs that local consumers continue to view now as a good time to buy a home.

“We’re seeing much more activity in the existing home market where the price points are lower,” Underwood said. “That should certainly serve as an indication to local communities and housing professionals about what housing choices are in most demand.”

Underwood said one of the biggest challenges the local housing industry faces is informing consumers of current market conditions that are in favor of new-home buyers.

“The focus on inventory levels, housing values and the national housing market has often obscured what’s happening in Kansas City and what benefits are available to buyers in the current market,” Underwood said. “Long-term fixed mortgage rates are near 6 percent and prices remain stable. As the housing market recovers, both prices and rates are expected to rise. That will make a significant impact on the ability of the typical family to buy the home they want. Consumers need to know that when making the decision on whether to buy now or wait when prices and rates are higher.”

Kansas City, Mo., leads the list of top-permitting cities with 207 single-family units. Olathe ranked second with 81 units, followed by Lee’s Summit with 52. Rounding out the top 10 were Kansas City, Kan./Wyandotte Co., 42 units; Independence and Shawnee, 40 units each; Grain Valley and Raymore, tied with 29; Lenexa, 28; and Overland Park, 26.

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.