Louisville Returns to the NAHB/First American Improving Markets Index this Month

Louisville returns to the NAHB/First American Improving Markets Index (IMI) in November 2012. It is one of 125 markets to make the list, which includes representatives from 38 states including the District of Columbia. The index identifies metropolitan areas that have shown improvement from their respective troughs in housing permits, employment and house prices for at least six consecutive months. Louisville first was placed on the IMI in March of this year and fell off in May.
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 metropolitan 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.
“This is very good news for the Louisville area as it represents and highlights how well our local housing market is doing this year. Our community overall has definitely made strides in 2012 with outstanding job announcements coming from companies like Ford and General Electric and existing home sales up sharply versus 2011, with price appreciations in the positive and growing once again for Louisville homeowners. We in the building industry are encouraged by the consumer confidence that we see in the market and believe that our industry has begun its return to a “new normal,” stated Chuck Kavanaugh, Executive Vice President of the Home Builders Association of Louisville.
Louisville native and NAHB Chief Economist David Crowe said of the most recent release of the IMI, “The solid increase in the number of improving housing market this month illustrates the degree to which the housing recovery has gained momentum since we initiated the IMI last year. We began November 2011 with 30 markets and today’s 125 represent roughly one-third of all the markets surveyed for this index.”
A complete list of all 125 metropolitan areas currently on the IMI, and separate breakouts of metros newly added to or dropped from the list in November, is available at: www.nahb.org/imi.