September’s permit activity was the lowest monthly total recorded so far this year and is another indication that home builders are committed to reducing new-home inventories, according to HBA Executive Vice President/CEO Tim Underwood.

“ We’re continuing to see a positive pattern of new-home closings outpacing starts and a decline in overall new-home inventories,” Underwood said. “The lower permit totals are expected as builders continue to make reducing inventory the primary concern.”

September’s permit totals marked a 41 percent decline from September 2006. New-home permits for the year to date are down 35 percent from 7,587 units a year ago to 4,949 units through the first three quarters of 2007.

While Underwood said last month’s move by the Federal Reserve to lower key interest rates and the prospect of future rate cuts should infuse optimism into the housing sector, he said improvement in the broader regional economy will be needed to boost consumer confidence in housing.

“ The combination of low rates and competitive prices are great news for homebuyers,” Underwood said. “But our metropolitan region continues to perform below expectations in terms of job growth, household income and economic development. During the last decade housing has played a critical role in boosting the local economy. Now is a time when we need the economy to improve so consumers feel more comfortable taking advantage of the competition prices, low mortgage rates and new housing choices available in the Greater Kansas City region.”

Kansas City, Mo., leads the list of top-permitting cities with 991 single-family homes permitted year to date through September. Olathe ranks second with 490 units, followed by Lee’s Summit with 411. Rounding out the top 10 are Overland Park, 299 units; Kansas City, Kan./Wyandotte Co., 270; Blue Springs, 195; Shawnee, 186; Gardner, 181; Grain Valley, 178; and Lenexa, 172.

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.