List of Improving Markets Shrinks in July

The ""National Association of Home Builders'"":http://www.nahb.org/default.aspx (NAHB) Improving Markets Index (IMI) continued to elude any trends in July, slipping a bit after last month's increase.

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According to the association, a total of 255 metro areas made the list for July, down from 263 in June. The index improved for seven straight months before declining in April and May--only to turn around again at the start of summer.

To qualify for the index, a market must have shown improvement (from its trough) in housing permits, home prices, and employment for at least six straight months.

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While July's report showed a decline month-over-month, the number of markets on the index was more than triple that of July 2012.

""This is the sixth straight month in which at least 70 percent of all U.S. metros have qualified for the Improving Markets Index,"" said NAHB chairman Rick Judson. ""The relative stability of the IMI is representative of the broad recovery underway, which is much more extensive than what we were looking at one year ago.""

According to NAHB, July's index included markets across 49 states and the District of Columbia. Six new markets qualified for the list: Cumberland, Maryland; Saginaw, Michigan; Olympia, Washington; Kingston, New York; and Farmington and Las Cruces, both in New Mexico. Meanwhile, 14 metros were dropped.

""Despite slight ups and downs in recent IMI levels, an overwhelming majority of U.S. metros--including those located in almost every state--remain solidly on the path to recovery even as the pace of their improvement is slowed by ongoing challenges related to the availability of credit, labor, lots and certain building materials,"" said NAHB chief economist David Crowe. ""Based on recent trends in home prices, housing permits and employment, the outlook for a continued housing expansion remains very positive for the remainder of 2013.""