“January’s permit total shows home builders are reacting positively to the current market conditions,” said HBA Executive Vice President/CEO Tim Underwood. “While there are signs that consumers are responding to favorable mortgage rates and new housing opportunities, there remains a higher than normal level of inventory. The steps home builders are taking to reduce inventories are positive indications for the local housing market.”

The lower permit activity in January is consistent with the housing forecast presented earlier this month by the HBA, which indicated that new-home starts could decline another 10 percent in metro Kansas City in 2007 without changes in the types of housing products provided to consumers.

“While the buildup in inventory is occurring at many price ranges and locations, we continue to see niche markets where home builders are having successes and there is demand for housing choices unmet in the current market,” Underwood said. “Local communities along with the housing industry need to carefully consider what housing choices are being built and identify new-home styles, community designs and price ranges that are currently under served in the market.

This month also marks the debut of the HBA seasonal adjustment for single-family unit totals tracked by the association. The HBA is using the same program used by the Census Bureau to seasonally adjust construction data. The result of the change to a seasonal adjustment will be better permit comparison reports and more accurate snapshots of market conditions, Underwood said.

“Seasonally adjusting the monthly single-family unit permit data will allow for a much better understanding of month-to-month changes in the market,” Underwood explained. “New-home construction is impacted significantly by seasonal fluctuations, and this new formula will provide the industry with better information in making planning decisions.”

Kansas City, Mo., began 2007 on top of the list of top-permitting cities with 91 single-family units. Olathe ranked second with 31 units, followed by Lee’s Summit and Shawnee tied for third with 22. Rounding out the top 10 were Independence, 19 units; Kansas City, Kan./Wyandotte Co., 17; Lenexa, 13; Leavenworth and Belton, tied with 11; and unincorporated Jackson County, 10.

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.