The metropolitan Kansas City housing market continued to struggle in 2011, with new-home construction down 7 percent from the previous year and average sales prices for new and existing homes down in December.
In its year-end report, the Home Builders Association of Greater Kansas City said 2,301 single-family permits were issued last year compared to 2,471 in 2010. Multi-family construction was up significantly, to 600 units from 253 in 2010. Still, that lagged behind the 1,497 units recorded in 2009 and 1,830 in 2008. On the sales front, the Kansas City Regional Association of Retailers reported in its year-end numbers that 1,686 existing homes sold in December, up 6 percent from December 2010. There were 147 new homes sold, up 17 percent from the same month a year ago.Inventories continued to shrink as well, according to the Realtors. At the end of the year, there were 1,240 new houses on the market, down 19 percent from December 2010, and 11,571 existing homes listed, down 16 percent from a year ago.Average sales prices, however, fell in December. For new homes, the average sales price was $299,774, down 7 percent from a year ago. The average price of an existing home was $137,052, which was 6 percent below December 2010. There was a 6.6-month supply of existing homes in December and an 8.8-month supply of new homes, according to the Realtors group, which uses a formula that divides the inventory by the pace of sales. When the supply exceeds six months, it is considered a buyer’s market.The Realtors group does not include homes for sale by owner in its tally.As for the homebuilding industry, Kansas City continued to lead the market in 2011 with 410 single-family permits, with most of that construction occurring in the Northland. It was followed by Olathe with 311 permits; Overland Park, 274; Lee’s Summit, 145, and Independence, 113.The bulk of the apartment construction was in Overland Park, where there were permits for 462 units issued last year.Read more Business
Posted on Wed, Jan. 25, 2012 05:37 PM
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Year-end numbers show KC home market still lagging
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To reach Kevin Collison, development reporter, call 816-234-4289 or email kcollison@kcstar.com. Follow him on Twitter @kckansascity.
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