First American Financial Corporation (NYSE: FAF), a leading global provider of title insurance and settlement services for real estate transactions, today released the monthly National Association of Home Builders/First American Improving Markets Index (IMI).
This month’s IMI reveals that the number of improving housing markets continued to expand for a third consecutive month, rising from 23 to 30. Nine metropolitan areas were added to this month’s list, including Cheyenne, Wyo., Corpus Christi, Texas, Davenport, Iowa, Fort Collins, Colo., Hinesville, Ga. Lima, Ohio, Monroe, La., Tyler, Texas and Williamsport, Pa.
The index identifies metropolitan areas that have shown at least six months of improvement in employment, housing prices and an increase in housing permits. The following metros were listed on the November index:
Corpus Christi, Texas
Fort Collins, Colo.
New Orleans, La.
Pine Bluff, Ark.
“Texas continues to dominate the list of improving housing markets in November, increasing its number of entries to eight and continuing a trend in which energy-producing metros seem to be doing better than the average,” said NAHB Chairman Bob Nielsen, a homebuilder from Reno, Nev. “Meanwhile, the geographic diversity of metros also continued to expand this month, with the states of Colorado, Georgia and Ohio all represented for the first time. This is further evidence that all housing markets are uniquely dependent upon local conditions, and some are leading the way toward an eventual, broader recovery.”
“When we start to look at real estate at the local level, we can see that economic conditions are improving,” said Kurt Pfotenhauer, vice chairman of First American Title Insurance Company. “These green shoots of housing recovery during a cold economic spring remind us all that real estate is local and that housing will recover one market at a time.”
The two metros that dropped off the list in November were Iowa City, Iowa and Wichita Falls, Texas. These metros experienced declines in their employment and permit data, respectively.
“The November IMI remains heavily weighted towards smaller cities, with Pittsburgh and New Orleans as the only major metros represented,” said NAHB Chief Economist David Crowe. “This is indicative of the tough conditions that continue to prevail across much of the country, particularly in larger markets that have been hit hardest by job losses and foreclosures during the recession and that will take more time to heal. However, momentum is building in pockets of the country where energy and agriculture are the dominant industries and where consistent, measurable improvements in economic conditions are now becoming apparent.”
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 metro 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.
Please visit www.nahb.org/imi for additional data, tables and a list of 2011 future economic release dates.
Editor’s Note: The NAHB/First American Improving Markets Index (IMI) is released on the fourth business day of each month at 10:00 a.m. ET, unless that day falls on a Friday, in which case, the index will be released the following Monday. A full calendar of 2011 release dates can be found at www.nahb.org/imi.
About First American
First American Financial Corporation (NYSE: FAF)is a leading provider of title insurance and settlement services to the real estate and mortgage industries, that traces its heritage back to 1889. First American and its affiliated companies also provide title plant management services; title and other real property records and images; valuation products and services; home warranty products; property and casualty insurance; and banking, trust and investment advisory services. With revenues of $3.9 billion in 2010, the company offers its products and services directly and through its agents and partners in all 50 states and abroad. More information about the company can be found at www.firstam.com.
The National Association of Home Builders is a Washington-based trade association representing more than 160,000 members involved in home building, remodeling, multifamily construction, property management, subcontracting, design, housing finance, building product manufacturing and other aspects of residential and light commercial construction. NAHB is affiliated with 800 state and local home builders associations around the country. NAHB's builder members will construct about 80 percent of the new housing units projected for this year.