Permit activity in March was up 25 percent from the same period one year ago when home builders pulled 920 single-family permits. March’s surge boosted the number of single-family permits issued in the first quarter of 2004 to 2,527, a strong 9 percent increase from the first quarter of 2003.

HBA Executive Vice President Tim Underwood said the permit numbers suggest the condition of the local construction market is very healthy despite rising concerns mortgage rates may be on the way up.

“The Kansas City home-building market remains very resilient,” Underwood said. “While higher mortgage rates are inevitable, it appears that the slight rate changes forecast should have little effect on the demand for new homes. If anything, the recent increase in mortgage rates will likely motivate more families to make the move to homeownership to take advantage of low rates before they go higher.”

Underwood said March’s permit numbers were just one sign of a strong local housing market. The 42nd annual Spring Homes Tour opened Sunday with a record 649 new homes on display, making it the second-largest housing tour in the nation. The HBA’s Housing Market Index also posted a strong 15-point increase in March. Higher ratings for new-home buyer traffic and expected conditions during the next six months helped fuel last month’s increase.

Kansas City, Mo., remained the top city in new-home construction activity through March with 382 single-family permits issued. Lee’s Summit moved into sole possession of second place with 230 permits, followed by Olathe with 221 and Overland Park with 208.

Rounding out the top 10 were Kansas City, Kan./Wyandotte County, 121; Shawnee, 120; Independence 108; Gardner, 103; Raymore, 86; and Louisburg, 80. Higher permit fees took effect in Louisburg this month, prompting many home builders to pull permits in advance of the higher fee. A total of 59 single-family permits were issued in Louisburg last month, which was more than were issued in the city all of last year.

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.