Could some of the most in-demand housing markets be cooling off?
NAHB: 28 new housing markets show growth in June
Twenty-eight metropolitan areas joined the NAHB/First American Improving Markets Index, which lists U.S. housing markets showing sustained growth, in the month of June.
Improving Markets Index, IMI, June 2012, NAHB, growth, 28 new markets
Twenty-eight metropolitan areas joined the NAHB/First American Improving Markets Index, which lists U.S. housing markets showing sustained growth, in the month of June. A total of 31 states plus Washington, D.C., are now represented on the list.
Overall, the total number of markets showing improvement dropped from 100 in May to 80 in June, with 48 cities dropping off the list.
Among the newest additions to the IMI were: Tuscaloosa, Ala.; Fayetteville, Ark.; Jonesboro, Ark.; Hanford, Calif.; Grand Junction, Colo.; Anderson, Ind.; Columbus, Ind.; Muncie, Ind.; Owensboro, Ky.; Houma, La.; Bay City, Mich.; Monroe, Mich.; Hickory, N.C.; Fargo, N.D.; Syracuse, N.Y.; Sandusky, Ohio; Florence, S.C.; Greenville, S.C.; Clarksville, Tenn.; Jackson, Tenn.; Knoxville, Tenn.; Austin, Texas; Dallas, Texas; San Antonio, Texas; Texarkana, Texas; Wichita Falls, Texas; Parkersburg, W. Va.; and Cheyenne, Wyo.
“The shifting of some markets off the IMI in June underscores the fragile nature of the housing recovery as well as the fact that many locations that previously made the list had recorded only marginal house price gains, which were easily wiped out by small downward changes,” noted NAHB Chief Economist David Crowe. “However, the fact that multiple new areas are showing up on the list each month is encouraging, and highlights the degree to which local economic and job market conditions are what drive individual housing markets.”
The IMI charts growth in a given metropolitan area through a trio of indicators: employment growth, home price appreciation, and single-family housing permit growth. Overall improvement is based on growth in each category from its respective trough point. A metropolitan area must demonstrate improvement in all three areas for at least three months to make the list.
To see the rest of the June Improving Market Index, click here.