Housing market shows wider improvement

The housing sector is showing improvement in a growing number of metropolitan areas. 

The list of housing markets showing measurable improvement expanded by 29 metros in February to 98 on the National Association of Home Builders/First American Improving Markets Index released on Monday. 

All today, 36 states are represented by at least one market on the list.

"While many of the markets on the February index are far from fully recovered, the index points out where employment, home prices and housing production are no longer retreating and have held above their lowest recession troughs for six months or more," said David Crowe, NAHB's chief economist. 

"This is a sign that a large cross section of the country is starting to turn the corner as local economic conditions stabilize."

Home builders have pointed out that while the overall market continues to struggle against a glut of foreclosures, tight lending standards and high unemployment, among other factors, there are steady improvements across the country that indicate the market has hit bottom and will gradually regain its health. 

The index identifies metropolitan areas that have shown improvement from their respective troughs in housing permits, employment and housing prices for at least six consecutive months. 

The February index adds some metropolitan areas that have been particularly weak. This is due to the fact that the IMI measures improvement from a bottom, and some of the hardest hit markets are showing signs of coming off extreme lows. 

New entrants to list in February include Miami; Boston; Detroit; Kansas City, Mo.; Portland, Ore.; Memphis, Tenn.; and Salt Lake City.

"This indicates that despite the many challenges that continue to drag on a housing recovery, including the tight lending environment for builders and buyers, improving conditions are slowly but surely spreading from one housing market to the next," said NAHB Chairman Bob Nielsen, a home builder from Reno, Nev. 

Seven markets dropped from the index in February as they experienced softening house prices, including San Jose, Calif.; Washington, D.C.; Kankakee, Ill.; New Orleans; Worcester, Mass.; Jackson, Miss.; and Sherman, Texas.