The number of improving local housing markets across the United States gained dramatically in January, providing fresh evidence that the housing sector is experiencing a solid recovery, a leading industry report revealed on Monday.

The number of improving markets in the first month of this year rose to 242, up from 201 in December, according to the Improving Markets Index (IMI) released by the National Association of Home Builders (NAHB).

The IMI has seen the fifth consecutive month of expansion, coupled with the fact that well over half of all metro areas are now represented on the improving markets list.

"The IMI has almost doubled in the past two months as stronger demand during prime home buying season boosted prices across a broader number of metropolitan areas," said NAHB Chief Economist David Crowe.

The IMI traces housing markets throughout the country that are showing signs of improving economic health, resulting from indicators like employment growth, housing price appreciation and single-family housing permit growth. A metropolitan area must see improvement in all three measures for at least six consecutive months before being included on the list.