The Improving Markets Index for June added 29 new markets for a grand total of 263 markets. The overall numbers are three times higher than June 2012 Improving Markets Index findings, a sure indicator of momentum in the U.S. housing market. Twenty-four markets were dropped from the list but this is no cause for alarm. NAHB Chief Economist David Crowe states “Marginal Seasonal adjustments are to be expected as the recovery expands.” This is the fifth consecutive month that more than 70% of metro areas in the U.S. were considered improving newly added markets included: 
- Mount Vernon, Washington
- Laredo, Texas
- Philadelphia, Pennsylvania
- Jacksonville, North Carolina
- Lexington, Kentucky
- Topeka, Kansas
- Chicago, Illinois
Some of the metros dropped from the Improving Markets Index list this month include:
- Mobile, Alabama
- Montgomery, Alabama
- Hartford, Connecticut
- New Haven, Connecticut
- Fayetteville, North Carolina
- Cincinnati, Ohio
- El Paso, Texas
The Improving Markets Index is a monthly report produced by the National Home Builders Association and Wells Fargo. In order to be selected, a metro must show gains in the areas of single-family housing permits, price appreciation and employment for six consecutive months. The data is gathered from the U.S. Census Bureau, Freddie Mac and the Bureau of Labor Statistics.
Kurt Pfotenhauer, vice chairman of First American Title Insurance Company, notes that homebuyers are continuing to take advantage of the record-low interest rates and affordability, as evidenced by the rising numbers in the index. As home values appreciate and more families take the plunge into ownership, a few bumps in the road to recovery remain. NAHB Chairman Rick Judson, a North Carolina homebuilder, points out, “While that’s a good sign that the housing recovery is on solid footing, we know that various challenges are slowing its progress—including continuing issues with credit availability for builders and buyers, as well as appraisals that aren’t keeping up with the rising cost of construction.”
For more information on First Preston HT, visit our website at FirstPrestonHT.com.
Sources:
1) http://www.nahb.org