Gains in housing market and economic gains continued in the second quarter of 2017 but building permits did not keep pace
Gains in housing market and economic gains continued in the second quarter of 2017 but building permits did not keep pace.
The National Association of Realtors/First American Leading Markets Index shows that nationwide markets are running at 102% of normal housing market and economic activity.
House prices are well ahead (152%) of normal while employment is at 98%. Housing permits for single-family homes are at just 54% though.
“This report shows that the housing and economic recovery is widespread across the nation and that housing has made significant gains since the Great Recession,” said NAHB Chairman Granger MacDonald, a home builder and developer from Kerrville, Texas. “However, the lagging single-family permit indicator shows that housing still has a ways to go to get back to full strength.”
The LMI score gained in 89% of all metros improved their quarterly activity score, led by Baton Rouge, LA which is 76% above its historic normal market level.
Odessa, TX leads the gains for smaller metros, running at more than double its market strength before the recession.
“The overall index is running above 100 percent of normal largely due to healthy home price appreciation,” said NAHB Chief Economist Robert Dietz. “At the same time, the reason why single-family permits are barely halfway above normal is because builders continue to face persistent supply-side headwinds, including rising material prices and a shortage of buildable lots and skilled labor.”
The National Association of Realtors/First American Leading Markets Index shows that nationwide markets are running at 102% of normal housing market and economic activity.
House prices are well ahead (152%) of normal while employment is at 98%. Housing permits for single-family homes are at just 54% though.
“This report shows that the housing and economic recovery is widespread across the nation and that housing has made significant gains since the Great Recession,” said NAHB Chairman Granger MacDonald, a home builder and developer from Kerrville, Texas. “However, the lagging single-family permit indicator shows that housing still has a ways to go to get back to full strength.”
The LMI score gained in 89% of all metros improved their quarterly activity score, led by Baton Rouge, LA which is 76% above its historic normal market level.
Odessa, TX leads the gains for smaller metros, running at more than double its market strength before the recession.
“The overall index is running above 100 percent of normal largely due to healthy home price appreciation,” said NAHB Chief Economist Robert Dietz. “At the same time, the reason why single-family permits are barely halfway above normal is because builders continue to face persistent supply-side headwinds, including rising material prices and a shortage of buildable lots and skilled labor.”
