Improving Markets List Expands for Seventh Straight Month

Thirty-four new markets were added to the NAHB's improving markets list and 19 were dropped from it in March. Notable additions include such diverse locations as Birmingham, Ala.; Santa Barbara, Calif. (pictured); Colorado Springs, Colo.; and Bloomington, Ind.

A key list of improving U.S. housing markets expanded for a seventh consecutive month in March. The National Association of Home Builders/First American Improving Markets Index (IMI) now totals 274 metropolitan areas, a net gain of 15 markets since February that includes entrants from all 50 states and the District of Columbia.

"[While] there are still a lot of uncertainties in the regulatory arena, it looks like we are finally seeing the beginning of what could be a broad and deep recovery of the nation's housing market," said Kurt Pfotenhauer, vice chairman of First American Title Insurance Company.

The IMI tracks and analyzes 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. Metropolitan areas that have shown improvement from their respective troughs in all three categories for at least six consecutive months are included on the index.

"With just over 75 percent of the 361 metros covered by the IMI now seen as improving, the housing market is on considerably more solid footing than it was at this time last year," said NAHB chief economist David Crowe. "While we expect this positive momentum to continue, it's important to understand that many markets are just beginning the recovery process, and that numerous issues – from credit availability to the rising cost of building materials and emerging lot shortages – are slowing the pace of that advancement."

A complete list of all 274 metropolitan areas on the IMI is available at www.nahb.org/imi.