The housing market in the Kansas City area continued to rebound during the first half of 2013, with apartment construction tripling and home prices rising.
Two midyear housing reports showed strong gains in both building and sales activity.
The Home Builders Association of Greater Kansas City reported 1,946 permits issued for single-family homes through June, up 31.6 percent from the same six-month period last year, and 1,702 apartment units, up 229.2 percent.
It was the best six-month report for builders since 2008. The six-month apartment total was the most since 2001.
“Midyear is a key measurement point for us in projecting where we will be by … year end,” said Sara Corless, executive vice president of the Builders Association. “With interest rates gradually ticking up, builders expect an increasing number of buyers to continue their return into the market.”
Kansas City, thanks to the strength of its Northland subdivisions, led the area with 319 single-family permits issued through June. It was followed by Olathe, 255; Overland Park, 210; Lee’s Summit, 167; Blue Springs, 94; and Lenexa, 92.
In another report, the Kansas City Regional Association of Realtors reported the average sales price of an existing home in June was $184,739, up 7 percent from the same month last year. The average sales price of a new home was $335,666, up 7.8 percent.
There were 2,719 existing homes sold last month, up 10 percent over June 2012, and 233 new homes sold, an 8 percent decline.
The supply of homes listed for sale in June declined from last year. There was an inventory of 12,152 existing homes, down 8 percent from last year, and 982 new homes, down 10 percent.
The Realtors Association reported a 5.7-month supply of existing homes in June compared with a seven-month supply last year, which the group described as a balanced market for buyers and sellers.
It was a seller’s market, however, when it came to new homes, with a 4.9-month supply in June. Last year, there was a 6.8-month supply of new homes.