20 Cities Added to Improving Housing Market List

More cities were added to this month’s Improving Markets Index, which was created earlier this year by the National Association of Home Builders and First American. The index identifies cities that are showing improvement in housing permits, employment, and home prices for at least six consecutive months.

The latest index results is “very much in keeping with the latest government housing data and our own builder surveys, which have shown modest signs of improvement in certain individual markets where employment is gaining and distressed properties are not as numerous," NAHB Chief Economist David Crowe said in a statement. "These gradual improvements are now becoming evident not just in small, energy-producing metros that have previously dominated the [index], but also in several larger markets and areas with more diverse economies."

The 20 new metro areas added to this month’s list are: 

• Ann Arbor, Mich.
• Athens, Ga.
• Boulder, Col
• Phoenix, AZ
• Canton, Ohio
• Charleston, W.V.
• Danville, Va.
• Fort Wayne, Ind.
• Grand Forks, N.D.
• Jackson, Miss.
• Kingsport, Tenn.
• Laredo, Texas
• Lincoln, Neb.
• Muncie, Ind.
• Muskegon, Mich.
• San Jose, Calif.
• Scranton, Pa.
• Toledo, Ohio
• Washington, D.C.
• Winchester, Va.

Meanwhile, nine markets were taken off the list in December -- mostly due to softening in housing prices. The nine markets removed from the list in December are: Alexandria, La.; Fairbanks, Alaska; Hinesville, Ga.; Houma, La.; Jonesboro, Ark.; Lima, Ohio; Pine Bluff, Ark.; Sumter, S.C.; and Waco, Texas. 

To see the complete list of all 41 metro areas on the improved housing market list, visit the National Association of Home Builders web site. 

5 Housing Markets Poised for Biggest Rebounds

Bismarck, N.D is expected to see some of the strongest gains in home appreciation in the next year, according to a new report from Veros Real Estate Solutions, a risk management and collateral valuation service. With a low unemployment rate at 3.5 percent and a growing economy, Bismarck is forecasted to see housing values appreciate at 5.6 percent, according to Veros. 

Veros projects that the following five markets will post the strongest gains in home appreciation over the next year: 

• Bismarck, N.D.: 5.6 percent
• Honolulu: 2.9
• Fargo, N.D.-Minn.: 2
• Harrisburg/Carlisle, Pa.: 1.9
• Pittsburgh, Pa: 1.9

The unemployment rate and housing supply tend to be the biggest factors differentiating the projected strong markets from the weak. The projected five weakest housing markets in the next year, according to Veros, are: 

• Bakersfield, Calif.: -5.5 percent
• Reno/Sparks, Nev.: -5.1
• Deltona/Daytona Beach/Ormond Beach, Fla.: -5.1
• Las Vegas/Paradise, Nev.: -5
• Fresno, Calif.: -4.8

“Overall, the recovery in the housing market is limited to just a few markets and is taking a long time to occur,” says Eric Fox, Veros vice president of statistical and economic modeling. “The encouraging news is that many markets are no longer expected to be rapidly declining.”