Improving housing markets
According to the National Association of Home Builders’ Improving Markets Index (IMI) for August, a total of 80 metropolitan statistical areas (MSAs) were listed as improving housing markets, which includes 75 markets that retained their places on the list for this month. Five new MSAs were added to the IMI in August, while nine fell off, with the NAHB blaming “slight movements in house prices.”
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. The five metros that were added to the list this month include Miami and Palm Bay, FL; Hinesville, GA; Terre Haute, IN; and Lubbock, Texas.
“The list of improving housing markets in August includes metros across every region of the country, all of which have distinctly different characteristics in terms of their economic and employment bases as well as other factors,” noted Barry Rutenberg, chairman of the National Association of Home Builders (NAHB) and a home builder from Gainesville, Fla.
Rutenberg added, “One thing that most markets have in common, however, is the tight lending environment for both builders and buyers that continues to drag on their positive momentum.”
The emerging housing recovery
NAHB Chief Economist, Dr. David Crowe said, “The fact that we continue to see a strong core of metros showing up on the improving list each month adds to the growing evidence that the emerging housing recovery has a solid foundation on which to build as housing returns to its traditional role of driving economic growth.”
“With nearly one quarter of all U.S. metros currently designated as improving housing markets, there is growing recognition among consumers that now is an opportune time to consider a home purchase,” added Kurt Pfotenhauer, vice chairman at First American Title Insurance Company.
Click here to download the full IMI list from the NAHB.