www.kchba.org | Volume 20, No. 6 | June 2014
Index Shows Metro Markets Continuing on Path to Normalcy Of the 351 metro markets measured, 300 have seen year-over-year economic gains, according to the National Association of Home Builders/First American Leading Markets Index (LMI), released May 6. The index shows that 59 metros have fully returned to or even exceeded their last normal levels of economic and housing activity.
should spur a steady release of pent up demand among home buyers.” Keeping its top position of major metros on the LMI was Baton Rouge, La. with a score of 1.41 - or 41 percent better than its last normal market level. Other major metros whose LMI scores indicate that their market activity now exceeds previous norms include Honolulu, Oklahoma
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At a score of .79, the Kansas City metro area falls into the 20% to 40% ranking.
The nationwide economic score rose slightly to .88 from a revised April reading of .87. This means that based on current permit, price and employment data, the nationwide average is running at 88 percent of normal economic and housing activity. The index showed an overall reading of .82 a year ago. “We have always said this recovery would be a slow but steady one, and I think this index continues to prove this,” said NAHB Chief Economist David Crowe. “The year started a bit slower than anyone could have anticipated, but we still expect housing to play a greater role in aiding the overall economic recovery this year. The job market continues to mend, and that 6
City, Austin and Houston, Texas, as well as Los Angeles and San Jose, Calif. and Harrisburg, Pa. “Our builder members tell us they are starting to see more optimism in the field,” said NAHB Chairman Kevin Kelly. “Mortgage rates are low, home prices are affordable and with the harsh winter behind us, latest surveys show builders are feeling more bullish about future sales conditions.” “We keep waiting for the economy to get into a higher gear,” said Kurt Pfotenhauer, vice chairman of First American Title Insurance Co., which co-sponsors the LMI report. “This report, along with other recent economic news, may mean we are finally there.”
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