Real Estate Market

NAHB index reveals 12 recovering metros among 360 examined

(9/30/2011) Erate Exclusive - On the lookout for closing windows of opportunity in the home buying and investment markets? Keep an eye on a new index that pinpoints housing markets that may be about to boom.

It's an index to watch, because once it says a housing market is on the road to recovery, bottom-market buying and investment bargains could be in the rear view mirror.

Prices could remain relatively low for anointed metros that make the cut, given the generally slow recovery pace of the housing market. However, a required six-month seasoning period of growth means the very best prices in a given metro likely will be history.

Once the word is out, you may have to move fast to cash in.

The National Association of Homebuilders' American Improving Markets Index (IMI) Is an economic index of metropolitan areas that have shown improvement for at least six months in three key economic areas -- housing permits, employment and housing prices.

"Despite the challenging conditions in the national economy and housing sector, there are areas throughout the country where we are seeing pockets of improvement," said Bob Nielsen, chairman of the National Association of Home Builders (NAHB) and a home builder from Reno, Nev.

"Housing conditions are local, and do not always reflect the national picture. We created this new index to shine a light on those housing markets across the country that have stabilized and have begun to show signs of recovery," Nielsen added.

Metros on the index's inaugural list include three from Louisiana, and two each from the big states of Texas and Alaska, but reveal no particular geographic trend.

To the contrary, indicating the spotty nature of recovery for the housing market nationwide, among 360 Metropolitan Statistical Areas examined, only 12 locations made the first list for hottest IMI metros. They were:

• Alexandria, LA
• Anchorage, AK
• Bangor, ME
• Bismarck, ND
• Casper, WY
• Fairbanks, AK
• Fayetteville, NC
• Houma, LA
• Midland, TX
• New Orleans, LA
• Pittsburgh, PA
• Waco, TX

The index uses single-family housing permit growth data from the U.S. Census Bureau. Employment growth data comes from the U.S. Bureau of Labor Statistics and home price appreciation from Freddie Mac.

In all three cases, NAHB crunches the latest available data from these sources to generate the list of improving markets.

NAHB said a metro area can't make it to the list unless it sees improvement all three areas for at least six months following a respective market's bottom.

"By examining key indicators of home prices, employment and housing permits data, we are using a comprehensive, but conservative method in determining which markets are improving," said NAHB chief economist David Crowe.

For each area, calculations are the product of:

• The current three-month moving average in single-family housing permits, divided by the three-month moving average that ends with the bottom of the market in single family permits, divided by the number of months since the bottom of the market.

• The current number of jobs divided by the number of jobs at the bottom of the market. • The current price index, divided by the index value at the bottom of the market. If there has been no bottom market, the value is zero.

"Last year at this time, there was not a single market that showed improvement using these criteria, and now we can point to 12 examples of growth," Crowe added.

Crowe said many areas on the move are considered energy-rich areas and, as such, are an important natural resource area at a time when energy comes at a premium.

"Those are the regions still experiencing relatively strong employment, supporting housing demand," Crowe said.

Refinance at Today's Low Rates!


Follow the link to continue reading the related articles

Vacation property owners enjoy hot summer

Glitter returning to Golden State's housing market

Few bright spots in blue Beige Book

It's housing, stupid

Home ownership beats renting, if you can get a loan











Fannie Mae & Jumbo Mortgage Rates

Just One Click! = Current Rate Chart

Pennsylvania Mortgage Rates Current Mortgage Rates - Hawaii Current Mortgage Rates - Alaska West Virginia Mortgage Rates Virginia Mortgage Rates District of Columbia Mortgage Rates Maryland Mortgage Rates Delaware Mortgage Rates New Jersey Mortgage Rates Connecticut Mortgage Rates Rhode Island Mortgage Rates Massachusetts Mortgage Rates New Hampshire Mortgage Rates Vermont Mortgage Rates New Hampshire Mortgage Rates Maine Current Mortgage Rates Vermont Mortgage Rates Current Mortgage Rates - New York Current Mortgage Rates - Michigan Current Interest Rates - Wisconsin Current Mortgage Rates - MINNESOTA Ohio Mortgage Rates Current Mortgage Rates - Kentucky Current Mortgage Rates - Indiana Illinois - Current Mortgage Rates Current Mortgage Rates - Iowa Missouri Mortgage Rates Current Mortgage Rates - North Carolina South Carolina Mortgage Rates Current Mortgage Rates - Florida Current Mortgage Rates - Georgia Current Mortgage Rates - Tennessee Current Mortgage Rates - Alabama Current Mortgage Rates - Mississippi Current Mortgage Rates - Louisiana Current Mortgage Rates - Arkansas Current Mortgage Rates - Oklahoma Current Mortgage Rates - TEXAS Current Mortgage Rates - New Mexico Current Mortgage Rates - Arizona Current Mortgage Rates - Kansas Current Mortgage Rates - Nebraska Current Mortgage Rates - Colorado Current Mortgage Rates - Wyoming South Dakota Mortgage Rates Current Mortgage Rates - North Dakota Current Rates - Montana Idaho Current Rates Washington Mortgage Rates Current Mortgage Rates - Oregon Current Mortgage Rates - Utah Current Mortgage Rates - Nevada Current Mortgage Rates - California

Start by selecting your state

Get the Updated and Improved Mortgage Rates App from

iPad for Mortgage Rates

Real Estate Market News

Refinancing: Selecting a Loan

Moving Ahead With Your Refinance