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New Homes Rise Despite Presence of Bank Owned Property Listings

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By : John Cutts    99 or more times read
New houses continue to be built in Kansas City, Missouri despite the fact that the area has numerous bank owned property listings. According to the most recent housing industry data, a total of 2,089 new homes were built in the city during the January-October 2010 period.

According to housing reports, the presence of Kansas City foreclosure listings have not discouraged home builders from constructing additional residential properties in the metro region. For the month of October 2010, the number of home building permits recorded an increase of 61.2% compared with September 2010.

Although the thousands of Missouri home foreclosures provide stiff competition to new houses, construction permits for new dwellings continue to rise, recording a 23.4% surge compared with October 2009. For October 2010, the value of housing construction permits is estimated at $47.9 million, a huge amount considering that foreclosures have been known to scare off new home builders.

According to housing market experts, the improvement in new housing statistics is a bit of a surprise since most U.S. housing markets are opting to hold back new residential property construction owing to the presence of thousands of properties under bank owned property listings. State housing market observers did admit that unemployment and credit acquisition obstacles continue to prevent further developments in the area's housing industry and economy.

Analysts have stated that during a housing crisis such as the one the country is having now, people are likely to search for home foreclosures first since they are cheaper than newly-built dwellings. However, builders in Kansas City reportedly believe that there is an unacknowledged demand for more homes since majority of Americans have started combining households when the recession started.

They believe that right now, these combined households are starting to look for homes of their own and are ready to purchase or rent more residential properties. Analysts are predicting that in a few months, the city will require additional dwellings and builders should be ready to provide them with ample supplies.

Although bank owned property listings still remain high in the metro region, new houses are starting to cut down on their market share. For October, Kansas City posted a total of 415 permits for new housing units, accounting for the highest monthly permit number among all counties covered by the metropolitan area.
John Cutts has been educated in the finer points of the foreclosure market over 5 years.

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