Economic And Housing Activity Seeing Upward Movement

Good news! The National Association of Home Builders/First American Leading Markets Index (LMI) reports that the housing market in 58 out of approximately 350 metropolitan regions across the country stayed at or exceeded the last normal level of activity. This means that on average the nation is at 87 percent of the normal housing and economic activity. This is great news for every facet of the housing market, from buyers to mortgage professionals to realtors to brokers to builders and more.

Housing Market Seeing Slow And Steady Progress

NAHB Chairman Rick Judson also works as a home builder in Charlotte. He says of the report, “U.S. housing markets are continuing to see a slow and steady progress back to the normal level. As the confidence of consumers gets stronger, this increases the number of buyers that are in the market.” As a builder, he understands and sees this firsthand in his own business.

The co-sponsor of the LMI report, First American Title Insurance Company, released this statement from vice chairman, Kurt Pfotenhauer. “We are pleased to see these continuing upward market trends, which are highlighted by the signs of improvement that were seen in eight-five percent of all metro areas over the last year.” As you can see, this is a trend that is spreading across the country, which is a sign that the market may be finally recovering.

What has been the impetus to this change? NAHB Chief Economist, David Crowe, attributes it to the firming housing prices that are being found in a number of markets. He went on to say that the healthiest housing markets in the country are actually in smaller cities that have a strong local economy. Among these are the gas and oil producing states of Wyoming, North Dakota, Louisiana, and Texas. This may be due to the steady job market that is offered in the community, as well as the income levels.

Small And Large Cities Seeing Growth In Activity

Both small and large metropolitan areas are seeing significant growth in the housing market activity. In the larger cities, at the top of the LMI list is Baton Rouge, LA, which has a score of 1.41-, which means that they had an increase of 41 percent over their last normal market level. Other metros that were listed include: Austin, Houston, Honolulu, and Oklahoma City. Two areas have exceeded their previous norms. They are Pittsburgh and Harrisburg, PA.

In the smaller metro areas, the top of the list is Bismarck, ND, Casper, WY, and Grand Forks, ND. Odessa and Midland, Texas have an LMI score of 2.0 or better, which means that the housing market is now at double the strength that it was before the recession.

This is good news for all segments of the housing market. Beginning to see upward movement is almost certainly a trend that will continue to grow in other metro areas, both small and large. Continuing to watch the LMI, as well as other reports, can enable us to stay on top of the market now and in the future.