Jun
18

Improving Market Index shows Pros and Cons for June

June 18, 2012

Rise and Fall in Home PricesThe National Association of Home Builders (NAHB) released their First American Improving Markets Index (IMI) for the month of June. The index looks at metropolitan areas that have shown improvement from their respective troughs in housing permits, employment and house prices for at least six consecutive months.

The list for June now includes 80 metropolitan areas. This month’s list is down from the 100 metropolitan areas shown as improving in May, but the list includes 28 new entrants and at least one representative from 31 different states (including the District of Columbia).

The IMI for June shows 52 metros holding on to their spots, 48 slipping from the list and 28 being added. New entries to this month’s list include Tuscaloosa, Ala.; Grand Junction, Colo.; Fargo, N.D.; Knoxville, Tenn.; and Dallas.

“Though today’s IMI reflects a decline in the number of improving markets from May, the list continues to show significant geographic diversity, with 31 states represented and roughly one quarter of all U.S. metros included,” said NAHB Chairman Barry Rutenberg.

The Improving Market Index focuses on three sets of independent monthly data to figure out the the top improving Metropolitan Statistical Areas. These three areas are:

  1. Employment growth from the Bureau of Labor Statistics.
  2. House price appreciation from Freddie Mac.
  3. Single-family housing permit growth from the U.S. Census Bureau.

“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.”

Sadly, the Chicagoland area did not show up on the IMI for June. Let’s hope July brings some positive news our way.

About The Author

Read All Stories By Mitch Levinson

Mitch Levinson is the author of “Internet Marketing: The Key to Increased New Home Sales” published by BuilderBooks. He is an Internet marketing expert with expertise in search engine optimization, website development, email marketing, social media and CRM consulting services. He is known for creating effective programs that can be tracked through analytics to prove effectiveness and ROI. Mitch is founder and president of MLC New Home Marketing and MLC FlatFee Realty, as well as managing partner of mRELEVANCE, LLC, a Marketing, Communication, Interactive agency with offices in Chicago and Atlanta. He currently leads the Chicago team. A Multi-Million Dollar Sales Producer who earned an MBA in Computer Information Systems and eCommerce, he brings a unique perspective and experience to the field of real estate communications. Mitch combines the two interests in order to help home builders and developers gain a competitive advantage through the Internet and technology. When he isn’t behind a computer, he enjoys participating in sports and coaching his kids’ teams. Mitch resides in Arlington Heights, Ill., a northwest suburb of Chicago, with his family, which includes two rambunctious labs. Visit my Google+ profile.

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