Markets in 75 of the country’s 360 metro areas have returned to or exceeded their last “normal” levels of economic and housing activity in the second quarter of 2015, representing a year-over-year gain of 13 markets, according to the National Association of Home Builders Leading Markets Index.
Sixty-six percent of markets have shown an improvement year-over-year.
The nationwide index score for the second quarter is .92, meaning the nationwide average is running at 92 percent of normal activity based on current permit, housing price and employment data.
"The markets are gradually improving and economic and job growth continue to strengthen, which bodes well for housing for the remainder of the year," said NAHB Chairman Tom Woods in a statement.
Of the LMI’s three components, housing prices have shown the largest recovery, with 345 markets returning to or exceeding their last normal level, said NAHB Chief Economist David Crowe in a statement.
The NAHB defines normal levels as the permit and home price activity from 2000–2003 and employment data from 2007.
Meanwhile, 64 markets met or exceeded their normal employment levels and 26 markets are at or above their normal permit levels.
The top 10 metro areas, in order of rank from high to low, are Baton Rouge, La.; Austin, Texas; Honolulu; Houston; Oklahoma City; San Jose, Calif.; Los Angeles; Charleston, S.C.; Salt Lake City; and Nashville, Tenn.
The top three smaller metros are Midland and Odessa, Texas; and Manhattan, Kan.
