Study: 1 in 6 Housing Markets Back to Normal
February 7, 2014
More housing markets are returning to their pre-recession levels, according to the National Association of Home Builders/First American Title Insurance Leading Markets Index. Fifty-eight metros out of more than 350 evaluated made the list of leading markets, which indicates they have returned to or are exceeding their normal levels of economic and housing activity.
The Leading Markets Index reflects housing data on permits for home construction, home prices, and employment over the last 12 months of more than 350 metros. The metro scoring the highest on the list was Baton Rouge, La., which is performing 41 percent above its last normal market level.
Other major metros topping the list include: Honolulu; Oklahoma City; Austin; Houston; Harrisburg, Pa.; and Pittsburgh. These metro area scores indicate their market activity is now exceeding previous normal.
For smaller metros, Odessa and Midland, Texas, are both more at double their strength prior to the recession. Other strong-performing small metros are Bismarck, N.D.; Casper, Wyo.; and Grand Forks, N.D.
"Firming home prices are hastening the return of normal economic and housing activity in an increasing number of markets," says NAHB Chief Economist David Crowe. "The healthiest markets continue to be centered in smaller metros that boast strong local economies, particularly in the oil and gas producing states of Texas, North Dakota, Louisiana and Wyoming."
Source: “1 in 6 Housing Markets Back to Pre-Recession Levels,” Mortgage News Daily (Feb. 6, 2014)
Updated: July 22, 2019