National List of Improving Markets Grows to Nearly 100 US Cities
Portland became the second metropolitan area in Oregon to make a growing list of improving housing markets, announced today by the National Association of Home Builders (NAHB). The list of housing markets showing measurable improvement expanded by 29 metros in February to include a total of 98 entries on the NAHB/First American Improving Markets Index (IMI), released today.
To make the index, metropolitan areas must show six consecutive months of improvement from their respective troughs in housing permits, employment, and house prices. Portland joins Albany/Corvallis, which made the list for the first time last month, as Oregon markets showing improvement, giving increased optimism for a housing recovery in 2012.
“While still a way off from a balanced market, six months of consecutive improvement in the three major indices shows that Portland is on its way to recovery,” noted Home Builders Association (HBA) of Metro Portland’s 2012 President Gordon Root, a local real estate developer. “Local housing inventory levels are below six month’s supply and our builder members are reporting increased demand in many areas within our market.”
According to a Clear Capitol real estate analysis, the home prices in the Portland market stabilized in the second half of 2011 and a 1.9% improvement in prices is projected for 2012. The RMLS™ December 2011 Market Action Report shows a 6% rise in pending sales and 4% increase in closed sales between December 2010 and December 2011. ”Overall, housing prices have stabilized over the last six months when looking at the Portland metropolitan area as a whole,” said Portland Metropolitan Association of Realtors® President Bob Ulery, a broker with The Hasson Company. “It’s an encouraging sign. Buyers and sellers should keep in mind that in this market, conditions vary substantially from neighborhood to neighborhood, even street to street. Contact your neighborhood Realtor® to determine the most accurate information about your area.”
“The fact that there are nearly 100 markets now on the improving list shows that the momentum is building for a housing recovery and that more buyers and sellers are starting to feel confident enough to return to the market,” said Kurt Pfotenhauer, vice chairman of First American Title Insurance Company.
The IMI is designed to track housing markets throughout the country that are showing signs of improving economic health. The three indicators that are analyzed are employment growth from the Bureau of Labor Statistics, house price appreciation from Freddie Mac, and single-family housing permit growth from the U.S. Census Bureau. A metropolitan 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.
About Home Builders Association of Metropolitan Portland
The Home Builders Association of Metropolitan Portland is the leading voice for the residential building industry, representing almost 1,000 builders, remodelers, trade contractors, suppliers and industry professionals. Since 1942, HBA has worked on behalf of the industry to promote diverse, affordable housing options to area residents. Visit www.HBApdx.org for more info.
About Portland Metro Association of Realtors
PMAR, the voice of real estate in the Portland metropolitan area, is Oregon’s largest local Realtor® association. Representing more than 5,200 professionals involved in all aspects of the real estate industry, PMAR is committed to protecting and promoting homeownership, establishing and maintaining high professional standards of practice and creating unity in the profession. Questions about homeownership? Visit www.HOWNW.com, a one-stop information resource on buying a home.