Markets in 56 out of the approximately 350 metro areas nationwide have returned to or exceeded their last normal levels of economic and housing activity, according to the National Association of Home Builders/First American Leading Markets Index (LMI) released Tuesday. This represents a net gain of two from the previous month. The index's nationwide score of .86 indicates that, based on current permits, prices and employment data, the nationwide average is running at 86 percent of normal economic and housing activity. (For single-family permits and home prices, 2000-2003 is used as the last "normal" period of growth.)
Markets in 56 out of the approximately 350 metro areas nationwide have returned to or exceeded their last normal levels of economic and housing activity, according to the National Association of Home Builders/First American Leading Markets Index (LMI) released Tuesday. This represents a net gain of two from the previous month. The index's nationwide score of .86 indicates that, based on current permits, prices and employment data, the nationwide average is running at 86 percent of normal economic and housing activity. (For single-family permits and home prices, 2000-2003 is used as the last "normal" period of growth.)
"More markets are slowly returning to normal levels, and we expect this upward trend to continue as an improving economy and pent-up demand bring more home buyers back into the marketplace," NAHB Chairman Rick Judson, a home builder from Charlotte, N.C., said in a statement. "Policymakers must be careful to avoid actions that would harm consumer confidence and impede the ongoing recovery."
Baton Rouge, La., tops the list of major metro markets on the LMI, with a score of 1.42-or 42 percent better than its last normal market level. Other major metros at the top of the list include Honolulu; Oklahoma City; Austin, Texas; Houston; Harrisburg, Pa.; and Pittsburgh.
On the list of smaller metros, both Odessa and Midland, Texas, scored 2.0 or better, meaning that their markets are now at double their strength prior to the recession. Also near the top are Casper, Wyo.; Bismarck, N.D.; and Grand Forks, N.D.
