U.S. housing slowly normalizing
Nov. 6, 2014- The U.S. economy is in a slow recovery and some regions are recovering at a quicker pace than others. The NAHB/First American Leading Markets Index (LMI) has mapped this course visually to show which regions are closest to normal and which areas have some progress yet to make in terms of single-family housing permits, employment and house prices. Nationwide, the index has arrived at 90 per cent of normal, up from 89 per cent in the second quarter of the year.
Identifying 350 metro areas each with their own LMI, 59 have recovered. Most of these recovered markets are energy producing areas but smaller metro areas with universities or military bases have also recovered more quickly than other regions. Areas that were hardest hit by the recession have the highest to climb to return to normal – these may be recovering quickly but progress will not be complete for some time.
There's a noticeable red patch surrounding the Great Lakes indicating a region that is still below 78 per cent of normal. These metro areas were some of the hardest hit and recovery remains slow. The Pacific Northwest, on the otherhand, is much closer to normal with several metro areas above the national average.
For more information, go to http://eyeonhousing.org/2014/11/progress-toward-normal/#