NAHB Says Improving Markets Fragile, Shift through Small Changes

The National Association of Home Builders (NAHB) list ofrnimproving housing markets continued to show sizeable shifts as small changes inrnthe metrics over the last month knocked some metropolitan areas off of the listrnwhile others improved enough to be included. rnThe June list however shrunk to 80 metropolitan areas from 100 in May.  The list includes 28 new names and there isrnat least one metro area from each of 30 states and the District of Columbia. </p

NAHB defines an improving market as one which has shownrnimprovement from its respective troughs in housing permits, employment, andrnhouse prices for at least six consecutive months.  Improvements are measured by data gathered fromrnthe Census Bureau, Department of Labor Statistics, and Freddie Mac.   While 28rncities were added to the list and 52 areas made return appearances NAHB notedrnthat 48 fell off of the list.   <br /<br /"Though today's IMI reflects a decline in the number of improving markets fromrnMay, the list continues to show significant geographic diversity, with 31rnstates represented and roughly one quarter of all U.S. metros included,"rnsaid NAHB Chairman Barry Rutenberg.<br /<br /"The shifting of some markets off the IMI in June underscores the fragilernnature of the housing recovery as well as the fact that many locations thatrnpreviously made the list had recorded only marginal house price gains, whichrnwere easily wiped out by small downward changes," noted NAHB ChiefrnEconomist David Crowe. "However, the fact that multiple new areas arernshowing up on the list each month is encouraging, and highlights the degree tornwhich local economic and job market conditions are what drive individualrnhousing markets."</p

More detail on the NAHB list of improvement markets can bernfound here.

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