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More Than One-Third of Metros Performing 90% of Pre-Crisis Levels

More than 35 percent of the more than 350 metro markets tracked in the ""National Association of Home Builders' (NAHB)"":http://www.nahb.org/default.aspx and ""First American's"":http://www.firstam.com/ Leading Markets Index are performing at 90 percent or higher of their pre-housing crisis norms, according to the latest Leading Markets Index.

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Previously, NAHB and First American tracked markets based on their rate of growth in the Improving Markets Index. Instead, the ""Leading Markets Index"":http://www.nahb.org/news_details.aspx?sectionID=2694&newsID=16608 compares each market to its pre-crisis norms in terms of current permits, prices, and employment.

Currently, 56 markets have returned to normal, up from 54 last month.

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""More markets are slowly returning to normal levels and we expect this upward trend to continue as an improving economy and pent-up demand brings more home buyers back into the marketplace,"" said Rick Judson, chairman of the NAHB.

A majority of the markets that are back to normal levels are smaller markets with populations of less than 500,000. Forty-eight of the 56 markets that are back to normal fall into this category, with many benefitting from strong energy sectors, which lead to strong employment.

Overall, metro markets across the nation are performing at an average of 86 percent of normal levels in terms of permits, prices, and employment, according to NAHB. Forty-five percent of metros are exceeding this rate.

Among large metros, Baton Rouge, Louisiana, in performing best, 42 percent better than its pre-crisis level. Oklahoma City, Oklahoma, Austin Texas, and Houston, Texas, are also at the top of the list of major metros.

Among smaller metros, two are performing at twice their pre-crisis level--Odessa, Texas, and Midland, Texas.

As markets continue to work their way back to normal and/or surpass their previous norms, Judson says, ""Policymakers must be careful to avoid actions that would harm consumer confidence and impede the ongoing recovery.""

About Author: Krista Franks Brock

Krista Franks Brock is a professional writer and editor who has covered the mortgage banking and default servicing sectors since 2011. Previously, she served as managing editor of DS News and Southern Distinction, a regional lifestyle publication. Her work has appeared in a variety of print and online publications, including Consumers Digest, Dallas Style and Design, DS News and DSNews.com, MReport and theMReport.com. She holds degrees in journalism and art from the University of Georgia.
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