The latest look at housing markets across the country in the third quarter showed economic and housing activity running at 90 percent of normal levels, the National Association of Home Builders (NAHB) reported.
The NAHB/First American Leading Markets Index (LMI) rose to .9 from .89 in the second quarter, with 66 percent of markets showing improvements year-over-year.
In 350 metro areas nationwide, 59 markets have returned to or exceeded their last normal levels of economic and housing activity, the report found.
“The markets are recovering at a slow, gradual pace,” NAHB Chairman Kevin Kelly said in a release announcing the index results. “Continued job creation, economic growth and increasing consumer confidence should help spur pent-up demand for housing.”
Baton Rouge, La., continues to top the list of major metros on the LMI, with a score of 1.39 – or 39 percent better than its last normal market level. Other major metros leading the list include Austin, Texas; Honolulu; Oklahoma City and Houston.
“Nearly half of all the markets on the Leading Markets Index are up since August, which is a good sign that the ongoing housing recovery will keep moving forward in 2015,” said Kurt Pfotenhauer, vice chairman of First American Title Insurance Co.
In building the index, 2000-2003 Is used as the last normal period for single-family permits and home prices, while 2007 is the base comparison for employment.
Cover Story: