Improving Housing Markets List Expands

Washington, DC, Dec. 6, 2012 -- The number of housing markets considered "improving" according to parameters established by the National Association of Home Builders/First American Improving Markets Index increased by 76 to a total of 201 in December.

The index also shows that the number of states represented on the list by at least one market increased from 38 in November to 44 (plus the District of Columbia) in December.

The index identifies metropolitan areas that have shown improvement from their respective troughs in housing permits, employment and house prices for at least six consecutive months.

A total of 84 new metros were added to the list and eight were dropped from it this month.

"The big gain in improving markets this December indicates that key measures of housing and economic strength have now been holding steady or improving in metros across the country for six months or more, which is an important signal of stability amidst the slowly emerging recovery," said NAHB Chairman Barry Rutenberg.

"The main thing that's limiting the progress we're seeing right now is the difficulty that potential buyers continue to experience with regard to overly tight mortgage qualifying standards."

NAHB Chief Economist David Crowe said he expects the overall housing recovery to continue expanding in 2013, unless lawmakers modify the mortgage interest deduction.