The number of U.S. housing markets showing consistent improvement in three key measures of strength expanded by 22 in November to a total of 125, according to the National Association of Home Builders/First American Improving Markets Index (IMI). This marks a third consecutive monthly gain for the index, which now includes representatives from across 38 states, as well as the District of Columbia.
Markets added to the list in November include such geographically diverse locations as San Diego; Gainesville, Fla.; Omaha, Neb.; Louisville, Ky.; and Charlotte, N.C. The three indicators that are analyzed to compile the monthly index are employment growth from the Bureau of Labor Statistics, housing price appreciation from Freddie Mac and single-family housing permit growth from the U.S. Census Bureau.
"Not only did 22 additional markets qualify for the improving list in November, but the geographic distribution of included metros expanded from 33 states to 38 (plus the District of Columbia), while 97 out of 103 markets retained their spots on the list from the previous month," observed Barry Rutenberg, NAHB chairman and a home builder from Gainesville, Fla. "This shows that a housing recovery is firmly taking root and helping generate needed jobs and economic growth across much of the country -- though we know that this expansion could be even stronger were it not for ongoing challenges, including overly tight lending conditions and difficult appraisals."
"The solid increase in the number of improving housing markets this month illustrates the degree to which the housing recovery has gained momentum since we initiated the IMI last year," noted NAHB chief economist David Crowe. "Compared with the 30 markets that made the list as of November 2011, we now have 125, which is about one-third of all the markets surveyed for this index."
"This new high point for the Improving Markets Index provides the latest evidence that housing has turned a corner due to rising demand from consumers who are increasingly confident about the direction of local home values," said Kurt Pfotenhauer, vice chairman of First American Title Insurance Company.
A complete list of all 125 metropolitan areas currently on the IMI, and separate breakouts of metros newly added to or dropped from the list in November, is available from the NAHB by clicking here.