Housing Markets Improve

The number of housing markets showing measurable improvement nearly doubled in January 2012 with the addition of 40 new metros to the National Association of Home Builders/First American Improving Markets Index (IMI). The IMI now has 76 improving markets, up from 41 in December, with 31 states and the District of Columbia represented by at least one entry.

The index identifies metropolitan areas that have shown improvement from their respective troughs in housing permits, employment and house prices for at least six consecutive months. Visit NAHB for a list of new entrants.

“The fact that the list of improving housing markets nearly doubled this month shows that a significant, positive trend is developing, and is even more relevant when you consider the expanding geographic distribution of the list—which now includes 31 states and the District of Columbia,” noted NAHB Chairman Bob Nielsen. “This trend could be even stronger if not for the numerous impediments that continue to slow a housing and economic recovery, including overly restrictive lending policies and the growing inventory of distressed properties in certain markets.”

“While relatively small metropolitan areas continue to dominate the list of improving housing markets, it’s important to note that several major metros in diverse parts of the country have now joined the field as well—including such metros as Dallas, Denver, Honolulu, Indianapolis, Nashville and Philadelphia,” added NAHB Chief Economist David Crowe. “This is an encouraging sign that gradually strengthening economic conditions are starting to take hold across a broader swath of America.”