Improving Market List Nearly Doubles

The expansion in the number of places and increase in larger places has helped to show some slim but positive improvements in national housing indicators and NAHB expects the trend to continue.

NAHB/First American Financial Improving Markets Index (IMI) rose to 76 in January from a December level of 41. Forty metropolitan areas were added to the list and five dropped off. The additions continued the trend of mostly smaller metropolitan areas recovering enough to make the list.

To be listed on IMI, a metropolitan area must see a six month improvement in single-family permits, house prices and employment. The index was initiated in September 2011 and has risen every month but the January increase was the largest.

While a few larger metropolitan areas were on the list and more were added in January, improvements in diverse and relatively small locations have been insufficient to show similar positive changes in national trends.

- Courtesy of NAHB