“This index helps illustrate how far the U.S. housingrnrecovery has come, and also how much further it has to go as we continue tornface some significant headwinds in terms of credit availability, rising costsrnfor lots and labor, and uncertainties regarding Washington policymaking,”rnsaid NAHB Chairman Rick Judson.</p

This month the LMI found that housing markets in 52 metrornareas have now returned to or exceeded their pre-recession levels ofrnactivity.  The index’s nationwide scorernof .85 indicates that, based on current permits, prices and employment data,rnthe nationwide housing market is running at 85 percent of normal activity.<br /<br /Baton Rouge, Louisiana tops the list of major metros on the LMI, with a scorernof 1.41 – or 41 percent better than its last normal market level. Other majorrnmetros at the top of the list include Honolulu, Oklahoma City, Austin andrnHouston, Texas, as well as Harrisburg, Pennsylvania – all of whose LMI scoresrnindicate that their housing markets now exceed previous norms.<br /<br /Looking at smaller metros, both Odessa and Midland, Texas, boast LMI scores ofrn2.0 or better, meaning that their housing markets are now at double theirrnstrength prior to the recession. Also at the top of the list of smaller metrosrnare Casper, Wyoming; Bismarck, North Dakota; and Florence, Alabama,rnrespectively.<br /<br /"Smaller metros are leading the way to a housing recovery, accounting forrn43 of the top 50 markets on the current LMI,” observed NAHB ChiefrnEconomist David Crowe. “This is very much in keeping with the results ofrnour previous index for improving markets, and is an indication of the extent tornwhich local economic conditions dictate the strength of individual housingrnmarkets.”<br /<br /Kurt Pfotenhauer, vice chairman of First American pointed out that in 118rnmetros their housing markets show activity levels of at least 90 percent ofrntheir previous norms, "A very encouraging sign of things to come," he said.

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