July 28, 2010 – (RealEstateRama) — Monthly permit numbers declined slightly in April while year over year permit numbers continued a modest increase for the fourth consecutive month according to statistics compiled by the Home Builders Association of Greater Kansas City (HBA). A seasonally adjusted total of 194 single-family homes were permitted in April, down from a revised total of 207 homes in March.
Local builders remain optimistic despite the permit drop and contribute much of the decline to poor weather and expiration of the first time buyer tax credit. The Kansas City metro had rain for over 14 days in the month of April.
“Builders are faced with poor weather conditions,” said HBA Executive Officer Sara Corless and, “despite the weather a positive outlook is that new building permits are still exceeding those of 2009.”
The single family seasonally adjusted totals for building units to date total 752 and far exceeds that of the 569 new single family units to date for 2009. The HBA hosted a webinar featuring National Association of Home Builders Chief Economist David Crowe, on Tuesday, May 18, 2010. The webinar presented overwhelming data to support the belief that the U.S. economic recovery is well underway and that above-trend growth will be sustained within the building industry.
“Builders reported strong traffic through the month of April and many builders went under contract on their homes,” Corless said. “The end of the new home buyer tax credit definitely contributed to the influx of new home sales but we are staying optimistic for a bright future.”
Many builders reported much of April was spent working with buyers looking to take advantage of tax credits and ensuring homes were finished by the scheduled closing date. The tax credit for new home buyers ended on April 30, 2010 requiring buyers who made the deadline to close by June 30. Builders have been working overtime to finish these homes.Kansas City, Mo., led the list of top-permitting cities in April with 49 single-family home units. Olathe ranked second with 24 units, followed by Lee’s Summit with 19, both Overland Park and Kansas City, Kan./Wyandotte County with 15. Rounding out the top ten were Leavenworth with 9; Lenexa with 7; Platte County, Shawnee and Blue Springs each with 5.
The Home Builders Association of Greater Kansas City (HBA) is the voice of the housing industry and the source for housing information. Comprising approximately 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.
