While the pace of new-home construction is still below levels normally recorded this time of year, the recent improvement in the seasonally adjusted rate suggests home builders are seeing signs of improvement in the local housing market, according to HBA Executive Vice President/CEO Tim Underwood.

“Inventory levels are still above normal, but the trend of increasing inventory is beginning to turn and we are seeing indications that inventory levels are dropping,” Underwood said.

Underwood said the industry expects home sales to gain momentum and inventory levels to further reduce as consumers become more aware of the current value of housing in Kansas City and the opportunity to take advantage of low mortgage rates.

“Many of the overall fundamentals of the Kansas City housing market remain positive, especially long-term mortgage rates,” Underwood said. “Many of the concerns expressed for the national housing market such as falling housing values and the sub-prime mortgage issue are not as significant in the metro market. Once consumers become more familiar with current local market conditions, we expect to see stronger activity among both new-home sales and starts.”

Underwood noted that the HBA’s annual Spring Homes Tour opens this Sunday with 766 entries. The event is the second-largest housing tour in the nation and annually provides local new-home consumers with an opportunity to shop new homes, home builders and communities throughout the metro region. The Spring Homes Tour continues through May 6.

“The tour is a tradition for Kansas City consumers and is an exclusive opportunity to take a closer look at the new housing choices and options available in the local housing market,” Underwood said.

Kansas City, Mo., leads the list of top-permitting cities with 366 single-family units. Olathe ranked second with 172 units, followed by Lee’s Summit with 106. Rounding out the top 10 were Grain Valley, 103 units; Kansas City, Kan./Wyandotte Co., 83; Overland Park, 62; Lenexa, 57; Independence, 53; and Gardner and Raymore, tied with 52.

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.