Markets in 119 of 340 metro areas nationwide returned to or exceeded previous normal levels of economic and housing activity in the first quarter of 2016, a year-over-year gain of 45 markets, according to the National Association of Home Builders/First American Leading Markets Index (LMI).
The LMI score edged up to .95 in the first quarter of 2016, versus .94 in the fourth quarter of 2015, which means the nationwide average is running at 95 percent of normal economic and housing activity. Eighty-six percent of markets have shown a year-over-year improvement.
"Among the LMI components, house prices continue to make the most widespread gains, with 324 markets having returned to or exceeded their last normal levels. Meanwhile, 66 metros have reached or exceeded normal employment activity," said NAHB Chief Economist Robert Dietz in a statement. "Single-family permits have inched up to 49 percent of normal activity, but remain the lagging part of the index."
New Orleans reported the highest large-metro LMI with a score of 1.54—54 percent better than its last normal market level. The highest small-metro LMI was 2.0, reported in both Midland and Odessa, Texas.
