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Housing markets across the nation continue to rebound toward more balanced levels of activity, the National Association of Home Builders (NAHB) recently reported. According to the NAHB’s Leading Markets Index (LMI), markets in 162 of the 340 metropolitan areas returned to or exceeded “normal” levels of activity in the third quarter of this year, representing a year-over-year gain of 73 markets.

“Ongoing job growth, low mortgage rates and rising incomes are contributing to a firming housing market and economy,” said NAHB Chairman Ed Brady in a statement. “Though some areas are recovering faster than others, the overall trend is positive.”

“House prices continue to show the strongest recovery among the LMI components, with 327 markets, or 97 percent, returning to or exceeding their last normal levels,” said NAHB Chief Economist Robert Dietz. “Meanwhile, 92 metros have reached or exceeded normal employment activity. Single-family permits have edged up to 51 percent of normal activity, but still lag far behind the other gauges of the Index.”

Major markets, according to the Index:

  1. Baton Rouge, La.
  2. Austin, Texas
  3. Honolulu, Hawaii
  4. San Jose, Calif.
  5. Provo, Utah
  6. Spokane, Wash.
  7. Nashville, Tenn.
  8. Houston, Texas
  9. Charleston, S.C.
  10. Los Angeles, Calif.

Source: National Association of Home Builders (NAHB)

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