As more housing markets return to normal, smaller markets are leading the pack, according to the National Association of Home Builders/First American Leading Markets Index. The latest index shows that 56 of the 350 metro areas evaluated nationwide have returned to or exceeded their normal levels of economic and housing activity.
“Forty-five percent of metro areas are recovering at a faster pace than the nation as a whole, with smaller markets leading the way,” says NAHB Chief Economist David Crowe. “Of the 56 markets that are at or above normal levels, 48 of them have populations that are less than 500,000, and many of these local metros are fueled by a strong energy sector, which is producing solid job and economic growth.”
The LMI evaluates more than 350 markets to gauge whether they are approaching or exceeding their previous normal levels of economic and housing activity, taking into account home prices, employment levels, and housing permits.
More information at source: National Association of Home Builders