Improving Housing Market Index Levels Off in April

Five new markets were added to the list and six markets were dropped from it this month. Newcomers included the geographically diverse locations of Macon, Ga.; Portland, Maine (pictured); Rocky Mount, N.C.; Eugene, Ore.; and Jackson, Tenn.

Following seven consecutive months of gains, the list of U.S. housing markets showing improvement remained virtually unchanged in April, with 273 metros on the National Association of Home Builders/First American Improving Markets Index (IMI), released today.

This total reflects a net reduction of one market since March and again includes entrants from all 50 states and the District of Columbia.

"After a strong run-up through late 2012 and early 2013, the number of improving markets is holding steady at a high level," said NAHB Chief Economist David Crowe. "We can expect to see more gradual gains going forward as challenges related to increased demand kick in – including everything from tightened supplies of developable lots and labor to the rising cost of building materials."

The IMI identifies metropolitan areas that have shown improvement from their respective troughs in housing permits, employment and house prices for at least six consecutive months. The three indicators analyzed are employment growth from the Bureau of Labor Statistics, house price appreciation from Freddie Mac and single-family housing permit growth from the U.S. Census Bureau.

"With 75 percent of the country seeing measurable improvement in housing market conditions, the outlook is definitely brightening for local economies this spring," said Kurt Pfotenhauer, vice chairman of First American Title Insurance Company.

A complete list of all 273 metropolitan areas currently on the IMI, and separate breakouts of metros newly added to or dropped from the list in April, is available at nahb.org/imi.