The decline in housing permits was expected after October’s numbers were boosted by more than 120 permits issued for two Northland projects breaking ground. November’s permit activity marked just a 2 percent decline from September numbers.

The main factor in the slow down in construction remains the effort of local home builders to reduce speculative new-home inventory levels. Recent sales reports show new-home listings are down 13 percent from a year ago and continue to post month-to-month declines. Forecasts call for new-home starts to remain at lower levels into early 2008.

Other good news for the local housing industry came last week when the Federal Reserve Board moved to cut short-term interest rates an additional quarter point. Lower interest rates will help increase housing affordability for consumers while helping to reduce short-term construction loan costs for builders and developers. Housing prospects for the metro were also buoyed by the Mid American Regional Council’s economic forecast that suggested the region is adding jobs at a faster than expected clip and the local economy should avoid a recession in 2008.

“Boosting consumer confidence is essential to energizing the Kansas City new-home market,” said HBA Executive Vice President/CEO Tim Underwood. “Lower interest rates, improved housing affordability and a growing job supply are critical to boosting new-home ownership. It is taking longer than many of us expected for consumers to respond to the factors in their favor in the current housing market.”

Underwood said the recent positive economic news should increase the likelihood of a housing rebound in early 2008.

“The optimism is that sales will pick up after the New Year,” Underwood said. “The recent favorable news regarding interest rates and the local economy should ease concerns about a downturn and highlight the opportunities available for new-home buyers.”

Kansas City, Mo., leads the list of top-permitting cities with 1,207 single-family homes permitted year to date through November. Olathe ranks second with 574 units, followed by Lee’s Summit with 476. Rounding out the top 10 are Overland Park, 338 units; Kansas City, Kan./Wyandotte Co., 318; Blue Springs, 236; Platte County, 217; Shawnee, 213; Gardner, 208; and Lenexa, 207.

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.