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Housing Recovery in Full Swing; Improving Markets Index Indicates Increase

The March 2013 Improving Markets Index, released by the National Association of Home Builders on the 21st, shows a seventh straight month of expansion in the number of metros included in the report. Specifically, 34 new markets joined the NAHB/First American Improving Markets Index. Of the 361 metro areas covered in this monthly report, 274 made it onto the improving list, which is more than 75 percent of the markets surveyed, according to NAHB Chief Economist David Crowe. These numbers point to what real estate and economic professionals are calling the tip of the iceberg and the return of a healthy housing sector.

Improving Markets Index

For an area or market to be considered “improving” it must have posted positive numbers in employment, housing permits pulled and housing prices for a minimum of six consecutive months. Real estate professionals in every state are reporting an uptick in the demand for housing, as well as an increasing number of areas reflecting gains in home values.

Although every state is represented in the Improving Markets Index for the second consecutive month, 19 areas were dropped from the report, including Santa Cruz, CA.; Springfield, IL.; and Utica, NY.  Kurt Pfotenhauer, the vice chairman of First American Title, said that while some uncertainties in the regulatory arena remain, “we are finally seeing what could be a broad and deep recovery of the nation’s housing markets.”

Areas new to the latest Improving Markets Index include Birmingham, AL.; Napa, CA.; Colorado Springs, CO.; Gainesville, FL.; Augusta, GA.; and Bloomington, IL.

The following areas returned to the list: Orlando, FL.; Boise City, ID; Chicago, IL.; Honolulu, HI; Athens, GA.; and San Antonio, TX.

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