Energy Boom Areas Continue as Leading Markets

The National Association of HomernBuilders/First American Title Leading Market Index (LMI) had a year-over-year netrngain of seven metropolitan areas in the third quarter of 2014.   The Indexrncounted 59 improving markets out of a total of 350 metropolitan areasrnnationwide, compared to 52 one year earlier.</p

The index is based on current ratesrnof housing permits issued, home prices, and employment data compared to thernlast levels of economic and housing activity considered to represent a normalrnmarket.  Markets considered leading eitherrnexceeded or continued to exceed those norms.</p

The nationwide score on the indexrnmoved from 89 in the second quarter to 90 in the third meaning that thernnational average is running at 90 percent of normal economic and housing activity.rnSixty-six percent of individual markets have shown year-over-year improvement. </p

“The markets are recovering at a slow, gradual pace,” said NAHB ChairmanrnKevin Kelly. “Continued job creation, economic growth and increasing consumerrnconfidence should help spur pent-up demand for housing.” <br /<br /Baton Rouge continues to top the list of major metros with an LMI score of 1.39rn- or 39 percent better than its last normal market level. Other major metrosrnwith LMI scores indicating their market activity now equals or exceeds previousrnnorms include, in order Austin, Honolulu; Oklahoma City and Houston.   The toprnten market also includes Los Angeles; San Jose, Salt Lake City; New Orleans andrnCharleston.  </p

Midland and Odessa, Texas were tops among smaller metropolitan areas.  Each had a score exceeding 2.0 meaning theirrnmarkets are now at double their strength prior to the recession.  Also near the top among smaller metros were GrandrnForks and Bismarck, North Dakota and Casper Wyoming.  </p

“An uptick in the number of single-family permits, which is currently onlyrn44 percent of normal activity, is the key to a full-fledged housing recovery,”rnsaid NAHB Chief Economist David Crowe. “In the 17 metros where permits are atrnor above normal, the overall index shows that these markets have fullyrnrecovered.”

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