Housing market improves in more metro areas

The housing market improved in a growing number of metropolitan areas in July, another sign the sector is making a gradual recovery, according to a survey released Monday. 

A National Association of Home Builders index showed that 84 large cities showed improvement this month, up four from June. 

That includes cities in 32 states and 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 broader economy," said David Crowe, NAHB's chief economist. 

"This is evidence that the housing recovery is slowly but surely taking root, one market at a time."

This month's index includes 73 metros that held their positions on the list from June, as well as 11 newly added markets. Notable new entries include such geographically diverse places as Prescott, Ariz.; Springfield, Mass.; St. Cloud, Minn.; and Houston, Texas.

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

"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. 

"That said, our members continue to assert the need for more reasonable credit standards and more accurate appraisal methods to perpetuate this positive momentum."