27 Oct NAHB Releases Improving Housing Markets List – Nearly Doubles in October

The second edition of the National Association of Home Builders/ First American Improving Markets Index (IMI), has been released, showing 23 individual housing markets now qualify as “improving” under the new gauge’s parameters. According the NAHB, this is nearly double the 12 housing markets that made the list last month.

The IMI is designed to track housing markets throughout the country that are showing signs of improving economic health. The index measures three sets of independent monthly data, which are then analyzed to generate a list of improving markets.

The index released earlier this month reveals metropolitan areas that have shown improvement for at least six months in housing permits, employment and housing prices.

Pittsburgh and New Orleans remain the two largest improving markets; however smaller cities in which energy and agriculture are the primary economic drivers indicate that the effects of the recession have been less pronounced, according to NAHB Chief Economist David Crowe.  He states that Texas stands out in particular, as it made seven of the 23 entries on the list.

The complete list of improving markets can be viewed here.

What are your thoughts? Do you think this is a sign that the housing recovery is well on its way?