Net Decrease in Improving Housing Markets after Months of Gains

The number of metropolitan areas on the National Association of Home Builders/First American Improving Markets Index (IMI) slipped by one in April.  A total of 273 cities are now on the list following the addition of five new markets to the list since March and the loss of six.  All 50 states and the District of Columbia remain represented on the list.

The IMI consists of metropolitan areas that have improved from their respective troughs in each of three areas, housing permits, employment, and house prices, for six consecutive months.  Improvement is measured by data from the U.S. Census Bureau, Bureau of Labor Statistics, and Freddie Mac.

April's downturn followed seven consecutive months of gains.  Added to the list this month were Macon, Georgia; Portland Maine, Rocky Mount, North Carolina; Eugene, Oregon; and Jackson Tennessee.  Napa, California; Bangor, Tallahassee, Brownsville, and Roanoke, Virginia were dropped from the list.

"After a strong run-up through late 2012 and early 2013, the number of improving markets is holding steady at a high level," said NAHB Chief Economist David Crowe. "We can expect to see more gradual gains going forward as challenges related to increased demand kick in - including everything from tightened supplies of developable lots and labor to the rising cost of building materials."