For the third month in a row, Portland made the NAHB/First American Improving Markets Index. Overall, the list grew to include 101 markets, with 35 states having at least one market on the list. Oregon has two markets – Portland and Corvallis.
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.
“The April IMI indicates that Portland continues to show measurable and consistent signs that things are headed in the right direction for housing,” said HBAMP 2012 President, Gordon Root. “This positive news is in line with what our builder members have observed regarding firming conditions and improved buyer interest.”
“The fact that the number and geographic distribution of improving housing markets continued to expand beyond the 100 mark in April bodes well for the start of the spring home buying season, and should be an encouraging sign for those who are considering a home purchase,” added 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 index measures three sets of independent monthly data to get a mark on the top improving Metropolitan Statistical Areas. 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. NAHB uses the latest available data from these sources to generate a list of improving markets. 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.