The National Association of Home Builder’s Improving Market Index was released Dec 6 2011. The December Index added 20 more metropolitan areas while 9 markets dropped off the Index. The IMI now has 41 Improving Markets. Several major markets were added to the index including San Jose, CA Toledo, OH and Washington, DC.
The index identifies metropolitan areas that have shown improvement from their respective troughs in housing permits, employment and house prices for at least six consecutive months.
New entrants to the list in December include the following:
Ann Arbor, MI
Fort Wayne, IN
Grand Forks, ND
San Jose, CA
“The increases we continue to see in the number and geographic diversity of improving metros are quite encouraging, and evidence of the fact that all housing markets are dependent on uniquely local factors,” said NAHB Chairman Bob Nielsen, a home builder from Reno, Nev. He noted that as of December, a total of 21 states and the District of Columbia are represented on the improving markets list — up from14 states represented in November.
Below is a Google Map I put together to see a visual of where these markets are. If you have been following this blog for awhile, you will notice the change in this map too. The map started out primarily in the “energy producing” areas, oil and agricultural – I concluded that the markets were improving in relation to employment. What is strikingly different now is that a the eastern midwest region seems to be improving now including several in Michigan. Michigan suffered huge price declines, it is possible they hit bottom first and are beginning to improve. It is also possible that the manufacturing is picking up which is improving the employment situation there. Difficult to say without further investigation.
I will stick with my original prediction that the Twin Cities will likely be included in the IMI in 2012.
View NAHB Improving Market Index, IMI in a larger map
What would be interesting is if someone would volunteer to pull some economic data of each of these markets including the unemployment rate to see if there a pattern here.
- Twenty Metros Join List of Improving Housing Markets Index in December (eyeonhousing.wordpress.com)
- Map of NAHB Improving Markets Index for October 2011 (craigkamman.com)
- First American and NAHB add more housing markets to improvement index (housingwire.com)