Report: Housing Up to 85% of Pre-Recession Activity

Julie C. Nichols General

M Report – Tory Barringer

A new index from the National Association of Home Builders (NAHB) and First American suggests that about one in seven housing markets have returned to or surpassed their pre-recessionary levels of activity. NAHB’s Leading Market Index (LMI), released for the first time Monday, measures employment growth data from the Bureau of Labor Statistics, home price appreciation data from Freddie Mac, and single-family housing permit growth from the Census Bureau to measure overall improvements in each market.

While the LMI helps illustrate how far the recovery has come in the last several years, NAHB chairman Rick Judson said it also measures “how much further it has to go as we continue to face some significant headwinds in terms of credit availability, rising costs for lots and labor, and uncertainties regarding Washington policymaking.” According to the association, the index registered a score of 0.85 nationwide, indicating that the national housing market is running at 85 percent of normal activity.

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