For the fifth straight month more than 70 percent of U.S. Metropolitan areas are listed as "improving" by the National Association of Home Builders/First American Improving Markets Index. The Index for June posts a total of 263 metro areas that have had six straight months of improvement in their respective performances on measures of housing, employment, and home prices.
Twenty-nine new markets joined the list over the last month while 24 others were dropped. There are now 49 states and the District of Columbia represented on the list. Added were geographically diverse areas such as Sioux City, Topeka, Baton Rouge, and Salinas.
"As market conditions improve across most of the country, some metros have moved onto the IMI list while marginal seasonal fluctuations have nudged others off of it," noted NAHB Chief Economist David Crowe. "This is to be expected as the recovery expands. Meanwhile, it's worth noting that the number of improving markets is now more than three times what it was in June 2012."
To be included on the list a market
must show six consecutive months of improvement from its recent low
point in each of the three indicators as measured by data on
employment growth from the Bureau of Labor Statistics, housing
permits from the U.S. Census Bureau, and home prices from Freddie
Mac.
"This is the fifth consecutive month in which the
IMI has designated more than 70 percent of U.S. metros as improving,"
observed NAHB Chairman Rick Judson. "While that's a good sign
that the housing recovery is on solid footing, we know that various
challenges are slowing its progress - including continuing issues
with credit availability for builders and buyers, as well as
appraisals that aren't keeping up with the rising cost of
construction."