Housing market showing solid signs of recovery

Baton Rouge, La., tops the list of major metro areas, with a score of 1.41 — or 41 percent better than its last normal market level.

“Smaller metros are leading the way to a housing recovery, accounting for 43 of the top 50 markets,” said David Crowe, NAHB’s chief economist. 

“This is very much in keeping with the results of our previous index for improving markets, and is an indication of the extent to which local economic conditions dictate the strength of individual housing markets.”

Other major areas at the top of the list include Honolulu; Oklahoma City; Austin, Texas; Houston, as well as Harrisburg, Pa. — with all the scores indicating that their housing markets exceed previous normal levels. 

Smaller metro areas, such as Odessa and Midland in Texas, posted scores of 2.0 or better, meaning that their housing markets are at double their strength prior to the recession. 

Also at the top of the list of smaller metro areas are Casper, Wyo.; Bismarck, N.D.; and Florence, Ala.

The index shifts the focus from identifying markets that have recently begun to recover to identifying those areas that are approaching and exceeding their previous normal levels of activity. 

For single-family permits and home prices, 2000-2003 is used as the last normal period, and for employment, 2007 is the base comparison.