Housing Markets Improving at a Gradual Pace

Washington, DC, Nov. 6, 2014 -- Markets in 59 of the approximately 350 metro areas nationwide returned to or exceeded their last normal levels of economic and housing activity in the third quarter, according to the National Association of Home Builders/First American Leading Markets Index.

The number represents a year-over-year net gain of seven markets. The index’s nationwide score moved up slightly from .89 in the second quarter to .90, meaning that based on current permit, price and employment data, the nationwide average is running at 90 percent of normal economic and housing activity. Meanwhile, 66 percent of markets have shown an improvement year-over-year.

“The markets are recovering at a slow, gradual pace,” said NAHB Chairman Kevin Kelly

“Continued job creation, economic growth and increasing consumer confidence should help spur pent-up demand for housing.”

NAHB Chief Economist David Crowe said, “An uptick in the number of single-family permits, which is currently only 44 percent of normal activity, is the key to a full-fledged housing recovery. In the 17 metros where permits are at or above normal, the overall index shows that these markets have fully recovered.”

Nearly half of all the markets on the Leading Markets Index are up since August.