Experts Agree: 2014 to be a Strong Year for Housing
Posted By Victoria Boss Vero Beach Realtor || 20-May-2014
The National Association of Home Builders (NAHB), one of the largest trade associations in the US, in partnership with First American, produce a Leading Markets Index (LMI) as a monthly report that cites housing markets by Metropolitan Statistical Areas that are leading the nation in economic health and recovery.
The LMI shows that the average economic and housing activity in metros is 88 percent. Average housing activity showed improvement in 59 out of 350 metro markets, with 11 metros supplemented every year. This demonstrates a rise in economic recovery rates. The average permit, price, and employment levels for the last twelve months is divided by the annual average over the last period of normal growth from 2000 to 2003 in homes and 2007 in employment. The results outline the NABH index.
The improving housing market and growing rates of employment have raised overall economic conditions. It is estimated that 2014 would likely prop up the housing market. NAHB chief economist states that Los Angeles, San Jose and alike areas are incorporated in the list of top ten largest metropolitan statistical areas (MSAs) showing economic recovery. Employment opportunities are also increasing which signifies availability of resources for fulfilling the demands of buyers.
The national index score showed improvement from 0.87 to 0.88 from 2013 to 2014. As per NABH, 28 metros showed increases in economic activity; 83 percent of metros have undergone development. Smaller metros like Midland and Odessa, Texas, Bismarck and Grand Forks, North Dakota, and Casper, Wyoming have showed improved levels since the recession. Major metros like Honolulu, Hawaii; Oklahoma City, Oklahoma; Austin, Texas; Houston, Texas; San Jose, California; and Harrisburg, Pennsylvania also reported major improvements. Baton Rouge, Louisiana was among the top metros showing economic recovery.
The year 2014 is widely considered to be a year of growth in terms of housing activity and economic recovery.