Housing Market Activity Improving at Consistent Pace, Says NAHB

Housing markets in 63 of the 350 metro areas nationwide returned to or exceeded their last normal levels of economic and housing activity in the fourth quarter of 2014, according to the National Association of Home Builders Leading Markets Index.

The figure represents a year-over-year gain of 11 markets. Nationwide, the index score shows that markets are running at an average of 90 percent of their normal economic and housing activity. Almost 70 percent of markets improved between 2013 and 2014.

"The markets are improving at a consistent pace," said NAHB Chairman Tom Woods in a statement. "A growing economy and rising consumer confidence should help drive the release of pent-up demand in 2015."

The most active major metro area in the fourth quarter of 2014 was Baton Rouge, La., which was doing 41 percent better (an LMI score of 1.41) than its last normal market level.  

Baton Rouge was followed by Austin, Texas; Honolulu; Houston; Oklahoma City; San Jose, Calif.; Los Angeles; Salt Lake City; Charleston, S.C.; and Nashville, Tenn.

More than 80 percent of all metros saw their LMI index increase or hold steady during the fourth quarter.

Smaller metros Midland and Odessa, Texas, had LMI scores of 2.0 or better, meaning their markets are twice as strong as their strength prior to the recession.