Housing Markets Return To Pre-Crisis Norms
Housing markets nationwide are making a collective comeback and returning to pre-housing crisis norms. According to the National Association of Home Builder’ and First American’s Leading Markets Index, 35% of the more than 350 metro markets are performing at 90% or higher than pre-crisis norms.
The market index used to be tracked by rate of growth in the Improving Markets Index. Now, the Leading Markets Index compares each market to its pre-crisis norm relating to current permits, prices and employment rates.
Rick Judson, chairman of the NAHB says, “More markets are slowly returning to normal levels and we expect this upward trend to continue as an improving economy and pent-up demand brings more home buyers back into the marketplace.”
Fifty-six markets have returned to normal, up from 54 in December. Forty-eight of the 56 markets are smaller markets with populations of 500,000 or less. The majority of these markets are benefitting from stronger employment rates correlating to the energy sector.
Baton Rouge is the best performing large metro area, performing 42% better than its pre-crisis norm.
As markets continue to recover and gain strength, it is important that consumers maintain high confidence levels and policymakers do not hinder the fragile recovery process.