The First American Improving Markets Index (IMI) of the National Association of Home Builders (NAHB) released Thursday the list of improving housing markets in the U.S., which included 247 metropolitan areas.
The number of improving markets is around eight cities less of what was recorded in July but it is around three times the number recorded a year ago.
NAHB releases a monthly report of the number and rate of improving property markets in the country. It analyzes metropolitan cities from all the 50 states of America and the District of Columbia through the IMI. The index tracks the cities on the basis of construction employment, housing permits and home prices for the previous six months in the region.
According to the report, all the 244 metros that made their way into the list in July managed to retain their spots for the month of August. The three new cities added this month include Kankakee, Ill., Atlantic City and Ocean City, N.J. However, 11 markets were dropped in August including Lancaster, P.A., Huntington, W.V., and Tyler, T.X.
Check out the complete list, here.
"In all, 244 metros that were listed as improving in July retained that status in August, and this is an encouraging sign of the continuing housing recovery," Rick Judson, chairman of NAHB said in a statement.
"The metros that fell off the list this month originally qualified with very small home price improvements that have since slipped back," David Crowe, Chief Economist of NAHB added.
Experts believe that the small fall in the list of improving markets is not a matter of concern at all. In fact, the new entrants indicate that the growth of the market is geographically diverse, which is a good sign.
In another report by NAHB, it was also found that builders' confidence in the housing markets rose considerably for the month of August. The index increased 24 points to 53, the highest number recorded for a year's second-quarter, since the inception of the index in 2008.
"Builders and developers for the 55+ housing sector are feeling optimistic as they are seeing more consumers return to the marketplace," said Robert Karen, chairman of NAHB's 50+ Housing Council and managing member of the Symphony Development Group.
"With existing home prices rising, consumers are able to sell their current homes and make the move toward either purchasing a home or renting an apartment that is designed to more specifically suit their lifestyle," he added.
