Tag Archives: Improving Markets Index

Read of the Day: List of Improving Housing Markets Expands to 125 in November

List of Improving Housing Markets Expands to 125 in November

by David Crowe — Eye on Housing

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.

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. Markets added to the list in November include such geographically diverse locations as San Diego, Calif.; Gainesville, Georgia; Omaha, Neb.; Louisville, Ky.; and Charlotte, N.C.

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.

The 125 markets on the IMI now represents about one-third of all the markets surveyed for this index.

The IMI is designed to track housing markets throughout the country that are showing signs of improving economic health. The index measures three sets of independent monthly data to get a mark on the top improving Metropolitan Statistical Areas.

The three indicators that are analyzed 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. NAHB uses the latest available data from these sources to generate a list of improving markets. A metropolitan area must see improvement in all three measures for at least six consecutive months following those measures’ respective troughs before being included on the improving markets list.

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Improving Markets Index Shows Modest Increase

Improving Markets Index Shows Modest Increase

by David Crowe — Eye on Housing

The NAHB/First American Improving Markets Index (IMI) increased in July to 84 from the June level of 80. The modest net increase was the result of an addition of 11 new metropolitan areas and a loss of seven areas. Six of the seven MSAs that were dropped from the list were because house prices fell back below their previous low and one because single-family building permits dropped below their former low point. Up to June, the average house price increases for the six dropped had been 0.2% compared to a 3.1% average increase for the MSAs remaining on the list. Harrisonburg VA fell off the list because permits fell below their last trough in October 2011.
The MSAs on the list represent 33 states and the District of Columbia and continue to show broad geographic distribution. House prices remain the most fragile of the three components of the IMI. Average permit growth was 4.1% from their respective troughs; average price growth was 3.1% and average employment growth is 4.8% from the respective troughs. National house price indexes have shown some positive movements in the past two months and these results should begin to show up in individual metropolitan areas as well.
NAHB expects the housing recovery to continue to be best shown through individual markets experiencing modest but continued growth in house price, building permits and employment.

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