Even as new-home building activity remains below typical levels from recent years, April’s gain marked the largest number of new-home starts in the metro since November when 412 single-family homes were permitted on a seasonally adjusted basis. An additional 176 multifamily units were permitted in April, bringing the total number of housing units permitted so far this year to 2,347. This marks just a 7 percent decrease from the first four months of 2007.

The continued focus of home builders on reducing inventories and limiting speculative construction has resulted in seven straight months of declining inventories, according to Heartland Multiple Listing Service. The organization’s most recent report showed the lowest number of new-homes for sale in the metro since August 2004. The report also showed new-home prices are up 4 percent from a year ago, continuing to buck national trends of declining home prices.

With home builders focusing on starts for presales and homes under contract, April’s spike may be an indicator that local consumers are ready to push past consumer confidence concerns and take advantage of the combination of low mortgage rates and competitive prices in the current housing market, according to HBA Executive Vice President/CEO Tim Underwood.

“ The consensus in the home-building community has been that prospective homebuyers are aware that the combination of low mortgage rates and prices are in their favor,” Underwood said. “What we have not seen yet is that realization driving new-home sales. We fully expect the recovery in the housing market to be driven by consumers who embrace the choices in the current market and take advantage of these historic opportunities.”

Underwood cited several recent articles that suggest the housing market has hit its trough and is on the way toward a rebound. A commentary in last week’s Wall Street Journal argued that April was likely the bottom of the U.S. housing market and that a recovery is underway.

“ The impact of the housing market on overall consumer confidence cannot be underestimated,” Underwood said. “Housing is an economic engine and accounts for around 16 cents of every dollar in the economy. Promoting the recovery of the housing sector will go a long way toward boosting the economy as a whole.”

Kansas City, Mo., led the list of top-permitting cities through April with 341 single-family home starts. Olathe ranked second with 141 units, followed by Lee’s Summit with 69 and Kansas City, Kan./Wyandotte County with 61. Rounding out the top ten were Overland Park and unincorporated Platte County tied with 56; Lenexa and Raymore tied with 41; Shawnee, 37; and Gardner, 35.

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.