A number of metro markets are returning to or in some cases exceeding their last normal levels of economic and housing activity, according to the National Association of Home Builders Leading Market Index.
A number of metro markets are returning to or in some cases exceeding their last normal levels of economic and housing activity, according to the National Association of Home Builders Leading Market Index.
Of the 351 metro markets measured, the index shows 59 metro areas have normalized or surpassed expectations, and 241 have seen year-over-year economic gains but are still below "normal" levels.
Nationwide, economic scores increased only slightly to 0.88 from a revised April figure of 0.87, meaning right now the nationwide average is only 12 percent away from normal economic and housing activity. A year ago, the nationwide index was 0.82.
"We have always said this recovery would be a slow but steady one, and I think this index continues to prove this," said NAHB Chief Economist David Crowe in a statement. "The year started a bit slower than anyone could have anticipated but we still expect housing to play a greater role in aiding the overall economic recovery this year. The job market continues to mend and that should spur a steady release of pent up demand among home buyers."
Focusing on individual cities, Baton Rouge, La., is currently scoring a 1.41, or 41 percent better than its normal market level. Honolulu, Oklahoma City, Austin and Houston, Texas, are also exceeding their normal levels, as is Los Angeles, San Jose, Calif., and Harrisburg, Pa.
Above-average market activity in smaller metros has centered on energy boom towns-Odessa and Midland, Texas; Bismarck, N.D.; Casper, Wyo.; and Grand Forks, N.D.; are all at the top of the list.
"Our builder members tell us they are starting to see more optimism in the field," said NAHB Chairman Kevin Kelly, a home builder and developer from Wilmington, Del., in a statement. "Mortgage rates are low, home prices are affordable and with the harsh winter behind us our latest surveys show builders are feeling more bullish about future sales conditions."