Markets Viewed as "Improving" Double in Month

Twenty-three metropolitan areas are nowrnlisted on the National Association of Home Builders (NAHB)/First AmericanrnImproving Markets Index (IMI) released on Thursday.  This is nearly double the 12 markets listedrnas improving when the first index was released in September.</p

NAHB defines an improving market as onernthat has shown improvement for at least six months in housing permits,rnemployment, and housing prices using indicators from the Bureau of LaborrnStatistics, Freddie Mac and the U.S. Census Bureau.  A metropolitan area must see improvement inrnall three areas for at least six months after the respective trough for eachrnindicator to be designated improved.</p

September’srninitial list consisted of twelve cities, Alexandria,rnNew Orleans, and Houma Louisiana;  Midland, Sherman, and Waco, Texas; Anchoragernand Fairbanks Alaska; Bangor, Maine; Bismarck, North Dakota; Casper, Wyoming; Fayetteville,rnNorth Carolina; and Pittsburgh, Pennsylvania. rnBangor was dropped from the list in October because of a decline inrnbuilding permits and 12 cities were added; Jonesboro and Pine Bluff, Arkansas; Amarillo,rnWichita Falls, McAllen, and Odessa Texas; Kankakee, Illinois, Sumter, SouthrnCarolina, Iowa City and Waterloo, Iowa, and Winston-Salem, North Carolina.</p

“Bothrnthe number and geographic diversity of improving housing markets expanded thisrnmonth, with Iowa,rnIllinois and South Carolina allrnnewly represented by one entry or more on the list,” said NAHB ChairmanrnBob Nielsen.  “This is furtherrnevidence that, despite the tough conditions that persist in many cities,rnpockets of improvement are emerging in local housing markets across the country.”<br /<br /"While Pittsburghrnand New Orleansrnremain the two largest improving markets, the October IMI is heavily weightedrnby smaller cities in which energy and agriculture are the primary economicrndrivers and where the effects of the recession have been less pronounced,"rnsaid NAHB Chief Economist David Crowe. "In particular, Texas stands out forrnits seven entries on the improving markets list."</p

Thernstrongest growth in employment was recorded in Midland and Odessa, Texas whichrnwere up 9 percent and 8.8 percent respectively from their troughs in Augustrn2009.  The largest home price increasesrnwere in Pittsburgh, up 7.3 percent and Kankakee, Illinois with prices up 6.9rnpercent from their respective troughs in late 2010 and early 2011.  Housing permits which bottomed out lastrnFebruary are up a stunning 60.6 percent in Sherman, Texas and 14.8 percent inrnJonesboro, Arkansas.

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