The National Association of Home Builders released the results of its First American Leading Markets Index (LMI) this week, showing continued strengthening of housing markets in several cities around the nation. Major metros leading the list include Austin, Houston, San Jose, Los Angeles, Charleston and Nashville.
Markets in 75 of the approximately 360 metro areas nationwide returned to or exceeded their last normal levels of economic and housing activity in the second quarter of 2015. This represents a year-over-year net gain of 13 markets.
The index’s nationwide score edged up to .92, meaning that based on current permit, price and employment data, the nationwide average is running at 92% of normal economic and housing activity. Meanwhile, 66% of markets have shown an improvement year-over-year.
“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, a home builder and developer from Blue Springs, Mo.
“Of the three elements in the LMI (house prices, permits and employment), house prices have had the broadest recovery, with 345 markets returning to or exceeding their last normal level,” said NAHB Chief Economist David Crowe. “Meanwhile, 64 markets have met or exceeded their normal employment levels.
“The number of markets on this quarter’s Leading Markets Index at or above 90 percent has reached an all-time high of 173, which represents nearly half of all markets nationwide,” said Kurt Pfotenhauer, vice chairman of First American Title Insurance Company, which co-sponsors the LMI report. “This is an encouraging sign that the housing and economic recovery continue to gain strength.”
