Monday, December 31, 2012 / by Carlos J Higareda
The Builders Association of Greater Indianapolis (BAGI) is reporting strong sales activity. According to BAGI, the nine-county, single-family building permits for November 2012 increased 43 percent compared to November 2011. There were 322 permits issued in November 2012 compared to 225 permits in November 2011. Indianapolis has also received a positive ranking. Indianapolis appeared 75th among the 201 housing markets considered “improving” in December, according to parameters established by the National Association of Home Builders/First American Improving Markets Index (IMI).
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, housing 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 measures for at least six consecutive months following those measures’ respective troughs before being included on the improving markets list.
“It is always an encouraging sign when the permit numbers are strong at the end of the year,” said Steve Lains, CEO of the BAGI. “For permits to be up 43 percent shows the progress new-home construction is making in our nine-county area. We would like to see that momentum carry over into 2013 and continue the steady climb we have seen this year.”