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Mike Erdmann said it is wonderful that Salem has made the National Association of Home Builders‘ list of recovering markets for May.

Erdmann, chief executive officer of the Home Builders Association of Marion and Polk Counties, said he just wishes that the listing impressed bankers.

鈥淭his is the sort of thing we’d like to show to lenders,鈥� Erdmann said. 鈥淚t’s still hard getting the banks to back new construction.鈥�

While the homebuilding market in Salem is improving, Erdmann and other observers at street level said a full recovery from the recession is still slow and fitful.

He added that he is not sure bankers will be too impressed with the fresh report. However, he said, they should definitely take notice.

Bend, Corvallis, Eugene, Medford and Portland have been on the list for some time. Salem is a newcomer 鈥� permits are up 5.8 percent, prices are up 4.1 percent and overall housing construction is up 1.4 percent.

鈥淚t tells us what we’re already seeing,鈥� Erdmann said. 鈥淲ith prices, in particular, we’re seeing some definite signs of growth.鈥�

Jon Chandler, CEO of the Oregon Home Builders Association, said he sees the same thing.

鈥淲e’re still handicapped by not getting funding from lenders,鈥� Chandler said. 鈥淲e’re still at half of what we should be for a healthy economy. Much of what is being built is with private money. The good news is that private money is cheaper than it has been in the past.鈥�

The NAHB released its list of 258 improving markets on Monday. The only other newcomers to the monthly list were Dothan, Ala.; Elizabethtown, Ky.; and Salisbury, Md.

The boom market, according to the report, is Odessa, Texas, with an almost 30 percent spike in jobs and a 20 percent jump in permits.

NAHB Chairman Rick Judson said the report tracks cities’ improvements (compared with their low points) over the past six months. The report dropped 19 cities from the list this month.

鈥淭he fact that more than 70 percent of all U.S. metros are holding onto their spots on the improving list is definitely good news,鈥� said Judson, a homebuilder from Charlotte, N.C. 鈥淭hat said, our industry’s progress on the road to recovery is being slowed by rising challenges related to the availability of credit, building materials, labor and lots for development.鈥�

The report is at least a morale booster, Chandler said.

鈥淭he notion has been to show that not all markets are tanking,鈥� he said. 鈥淚t’s finally turning around.鈥�

Although the report may boost local confidence, it has little practical impact in terms of fueling the recovery, he added.

鈥淎t the macro level, they’re looking at Europe and the big picture,鈥� Chandler said.

Connie Bresee, an agent with Coldwell Banker in Salem, said she can see the effects of the rebound in Salem’s home market. However, she said, it is still sluggish.

鈥淚t’s a very bizarre phenomenon,鈥� Bresee said. 鈥淲e are seeing multiple offers on properties, which is usually a sign that prices are going up, but the offers are usually on properties where the price has been reduced several times. It remains a very soft market.鈥�

Bresee said she can nonetheless see some times of change, especially for new construction. Most people with money to spend seem to be going after brand-new homes, she added.

Unfortunately, Erdmann said, new construction poses a problem for homebuilders. As homes are built, he said, the city is running out of available land.

鈥淕oing into spring, we have about five months’ worth of inventory,鈥� Erdmann said. 鈥淪till, it sure beats having 22 months’ worth of inventory on the market. Our biggest challenge right now is finding building property.鈥�

According to the national association, seasonal trends in home prices resulted in an overall decline in the Improving Market Index this month. However, the index remains at a strong level, NAHB economist David Crowe said in the report.

鈥淪ome metropolitan areas that had previously charted marginal home-price gains dropped off the list this time as a result of typically softer prices seen in the winter months, which is similar to what the index showed in this same period last year,鈥� he noted.

Erdmann said Salem homebuilders were hit pretty hard by the recession, so recovery is just going to take time.

鈥淪alem was a little early getting into the recession, so it’s only natural it will be a little late climbing out,鈥� he said.