Number of Markets Regaining Health Rises in July: NAHB

The number of markets showing sustained and measurable improvements rose to 84 in July from 80 in June, according to the First American Improving Markets Index (IMI) released by the ""National Association of Home Builders"":http://www.nahb.org/ (NAHB).

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July's IMI includes 73 metros from June's list and 11 new additions. New list entries noted by NAHB were Prescott, Arizona; Springfield, Massachusetts; St. Cloud, Minnesota; and Houston, Texas.

The 84 markets showing progress represent 32 states plus the District of Columbia.

""The modest increase in the July IMI is encouraging because it indicates that individual housing markets continue to regain their footing despite some recent reports of weakening in the

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broader economy,"" said NAHB Chief Economist David Crowe. ""This is evidence that the housing recovery is slowly but surely taking root, one market at a time.""

The index tracks metropolitan areas that show signs of strengthening in three areas: housing permits, employment, and house prices.

Employment growth data is pulled from the Bureau of Labor Statistics, house price appreciation is from Freddie Mac, and data on single-family housing permit growth comes from the U.S. Census Bureau.

In order to be on the list of improving markets, a metro area must show improvement in all three areas for at least six consecutive months following its respective troughs.

""The geographic diversity and growing number of metros on the latest IMI help spotlight the improvements we have begun to see in terms of home prices and job market conditions across certain parts of this country, which in turn are spurring more demand for new homes,"" said NAHB Chairman Barry Rutenberg, a home builder from Gainesville, Florida. ""That said, our members continue to assert the need for more reasonable credit standards and more accurate appraisal methods to perpetuate this positive momentum.""

More information on the list of metropolitan areas for July can be found at ""www.nahb.org/imi"":http://www.nahb.org/reference_list.aspx?sectionID=2223.