February Improving Markets Index adds 29 metro areas

The February edition of the NAHB/First American Improving Markets Index reveals the number of metropolitan areas where the housing market is recovering increased by 29, according to NAHB. Many in the industry are taking the news as a sign that the national housing market is continuing to make a recovery.

With these additions, the list now includes 98 metropolitan areas in 36 states nationwide.

An area is added to the list when it displays improvement from a bottomed-out housing market for six consecutive months. Changes in each area are measured according to that city’s individual low point. Three factors are analyzed to determine whether improvement has occurred:

1) Employment growth, supplied by the Bureau of Labor Statistics
2) Appreciation of housing prices, reported by Freddie Mac
3) Single-family housing permit growth, reported by the U.S. Census Bureau

Cities appearing on the list for the first time in February include: Miami; Boston; Detroit; Kansas City, Mo.; Portland, Ore.; Memphis, Tenn.; and Salt Lake City. Conversely, a number of cities dropped off the list due to softening housing prices, including: San Jose, Calif.; Washington, D.C.; Kankakee, Ill.; New Orleans; Worcester, Mass.; Jackson, Miss.; and Sherman, Texas.

To see the rest of the February IMI, click here.