Leading Markets Index Edges Higher as More Markets Recover

Markets in 58 of the approximately 350 metro areas nationwide 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, released Thursday. This represents a net gain of two from the previous month. The index's nationwide score ticked up a percentage point to .87. This means that based on current permits, prices and employment data, the nationwide average is running at 87 percent of normal economic and housing activity. "Housing markets across the nation are continuing their slow and steady climb back to normal levels," NAHB Chairman Rick Judson, a home builder from Charlotte, N.C., said in a statement. "As employment and consumer confidence slowly improves, this is spurring pent-up demand among potential buyers."

Baton Rouge, La., tops the list of major metros on the LMI, with a score of 1.41-or 41 percent better than its last normal market level. Other major metros at the top of the list include Honolulu; Oklahoma City; Austin and Houston, Texas; and Pittsburgh and Harrisburg, Pa. For smaller metros, both Odessa and Midland, Texas, lead the way with LMI scores of 2.0 or better, meaning that their markets are now at double their strength prior to the recession. Also at the top of the list of smaller metros are Bismarck, N.D.; Casper, Wyo.; and Grand Forks, N.D.

To view the entire downloadable LMI list, featuring all metro areas, click here.