20% of Housing Markets Return to 'Normal'
Seventy-five metro areas out of the 360 examined nationwide have returned to or exceeded their last normal levels of economic and housing activity during the second quarter. That marks a year-over-year increase of 13 markets, according to the National Association of Home Builders/First American Leading Markets Index, which compares current housing permits, prices, and employment data to past "normal" averages.
Housing Appreciation
As a whole, 66 percent of markets across the country have shown a year-over-year improvement, according to the index.
"The markets are gradually improving and economic and job growth continue to strengthen, which bodes well for housing for the remainder of the year," says NAHB Chairman Tom Woods.
"Home prices have seen the largest recovery out of the three elements the index looks at (home prices, permits, and employment)," says David Crowe, NAHB's chief economist. "Sixty-four markets have met or exceeded their normal employment levels," he notes. "The housing permit level has made the least progress toward normality, with only 26 markets at or above their last normal level."
Baton Rouge, La., continues to top the list of major metros that are exceeding their previous norms. It's performing 47 percent better than its last normal market level, according to the index. Other major metros topping the list also include Austin, Texas; Honolulu; Houston; and Oklahoma City; San Jose, Calif.; Los Angeles; Charleston, S.C.; Salt Lake City; and Nashville, Tenn.
Among smaller metros, Midland and Odessa, Texas, top the list, both housing markets performing at double their strength prior to the recession. Other top performing small metros include Manhattan, Kan.; Grand Forks, N.D.; and Casper, Wyo.
The index seeks to identify areas that are now approaching and exceeding their previous normal levels of economic and housing activity.
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