A dozen local housing markets have shown enough improvement over the last six months to make the cut for a new "good news" index the National Association of Home Builders hopes will take some of the spotlight off national measures that tend to portray only gloom and doom.
"Housing conditions are local, and do not always reflect the national picture," said Bob Nielsen, a Reno, Nev., builder and this year's NAHB chairman. "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."
The NAHB's new Improving Markets Index tracks markets that are showing signs of improving economic health by measuring three sets of independent monthly data – employment growth from the Bureau of Labor Statistics, price appreciation from Freddie Mac and single-family permit growth from the Census Bureau. A metro area must see improvement in all three areas for at least six months following their respective troughs before being included on the improving markets list.
Last year at this time, not one metro area in the country would have shown enough improvement to make the list based on the three data points. Now, in the first ever monthly report, "we can point to 12 examples of growth," said NAHB's chief economist, David Crowe.
The top ten most improved markets include: Alexandria, La.; Anchorage, Alaska; Bangor, Maine; Bismarck, N.D.;·Casper, Wyoming; Fairbanks, Alaska; Fayetteville; Houma, La.; Midland, Tex.; New Orleans; Pittsburgh, and Waco, Tex.
"It's not surprising that many of the states represented are energy rich areas," Crowe continued. "Those are the regions still experiencing relatively strong employment."
NAHB intends to publish the index on the fourth business day of every month.
