Housing market continues expansion

An increasing number of housing markets have shown improvement this month as the sector continues healing from a prolonged downturn. 

The number of improving metro areas increased to 242 in January from 201 last month, up for the fifth straight month, with a representative city from nearly every state and the District of Columbia, according to the National Association of Home Builders (NAHB)/First American Improving Markets Index (IMI) released on Monday. 

That means more than 67 percent of the 361 metros considered in the index are improving. 

"The IMI has almost doubled in the past two months as stronger demand during prime home buying season boosted prices across a broader number of metropolitan areas," said David Crowe, NAHB's chief economist.

The index identifies metro areas that have shown improvement from their respective troughs in housing permits, employment and house prices for at least six consecutive months. A total of 47 new metros were added to the list and six were dropped from it this month. Newly added metros include Los Angeles; Auburn, Ala.; Des Moines, Iowa; Nashville, Tenn.; Richmond, Va.; and Cleveland, Ohio.

"The story is no longer about exceptions to the rule, but about the growing breadth of the housing recovery even as overly strict mortgage requirements hold back the pace of improvement," said NAHB Chairman Barry Rutenberg, a home builder from Gainesville, Fla. 

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