Improving Markets Index Stalls In May

The National Association of Home Builders (NAHB) has determined that 100 markets in 34 states have exhibited growth in the last month, which is about even with the figures observed in the month prior. Industry observers are optimistic that improvement is occurring, even if it is just in isolated areas for now.

"Many of these [improving markets] are relatively small markets in terms of their population and building volume, which is why their improvement is barely registering on the national scale as of yet," NAHB chief economist David Crowe said in a statement. "Moreover, we are seeing some shifting of markets on and off the list primarily due to small seasonal house price changes in areas that have had flat, stable prices rather than a boom-and-bust cycle."

The unveiling of this list comes as Lewis Ranieri - known in the industry as the "Father of Mortgage Finance" - delivered comments on Monday, April 7, at a Mortgage Bankers Association (MBA) conference in New York. Ranieri told the assembled crowd that he believes the housing industry has finally reached its long-awaited bottom, after values have steadily dropped for the better part of six years. He said that he expects prices to begin to rebound just after the second or third quarter of this year.

If Ranieri and other industry observers are correct, homeowners may still need to weather another few months of financial struggles until the values of their properties begin to climb again. Until that point, they may need to identify strategies to make their monthly payments more affordable. Underwater homeowners can apply for a Home Affordable Refinance Program (HARP)

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