Metrowide new-home activity was very steady for the first quarter, with an average of 299 new homes permitted each month. Starts have largely focused on build jobs and homes under contract while builders work at whittling away at speculative new-home inventories.

There are signs that the pullback in starts and falling new-home listings are having a positive impact on the market. Forbes.com Web site recently ranked the city as the fifth-best major market in the nation for home sellers. The Web site said Kansas City reached price highs in 2007 before dipping in the four quarter and inventory issues are clearing, with a 40 percent decline in the number of unsold, vacant homes. The site noted the metro’s 2.5 percent vacancy rate should continue to fall and the rise in new jobs should benefit sellers.

Changes favoring sellers is good news for the overall housing market, according HBA Executive Vice President/CEO Tim Underwood. He said helping existing homeowners sell their current homes will stimulate the overall housing market and build volume for both existing homes and new homes.

“ With competitive prices and low mortgage rates, there are a lot of factors that make it a great time for consumers to buy a new home,” Underwood said. “While new-home inventories are falling, existing home listings have increased as current owners who would like to move have had difficulty selling their current home. The Forbes.com article is an indication that sellers should have an easier time selling their homes.”

In terms of consumers attempting to time the market and buy a new home at the bottom of the cycle, Underwood said recent indicators suggest that time may be closing – if the market has not already hit its lowest point.

“ When the pendulum begins to swing in the favor of sellers, it’s moving away from buyers. Homebuyers getting into the market now will likely see the most gains as prices increase and inventory falls,” he said.

While single-family construction was down in the first quarter, multifamily construction rose sharply. A total of 904 apartments, townhomes, lofts and condominiums were permitted in the first quarter, up from just 180 units in the same time period in 2007. Multifamily activity in the metro was at its highest first-quarter level since 2001 when 2,010 units were permitted.

Kansas City, Mo., led the list of top-permitting cities through March with 193 single-family homes permitted. Olathe ranked second with 101 units, followed by Lee’s Summit with 49 and Overland Park with 41. Rounding out the top ten were Raymore with 39; Lenexa, 38; Kansas City, Kan./Wyandotte County, 33; Blue Springs, 31; Shawnee, 26; and Gardner, 23.

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.