Dive Brief:

• The National Association of Home Builders/First American Leading Markets Index released Thursday found that 146 of the approximately 340 U.S. metro areas either reached or surpassed what is considered their normal housing and economic levels in the second quarter of 2016.
• That 146 figure — which represents more than 40% of all markets — includes the addition of 66 metro areas since the second quarter of 2015.
• The index found the overall U.S. average is currently at 97% of normal housing and economic levels, with 91% of markets improving in the past year.

Dive Insight:

NAHB Chairman Ed Brady said that, similar to previous housing industry reports, the LMI points to a "slow but steady recovery" in the residential industry. "With a strengthening economy, solid job growth and low mortgage interest rates, the market should continue on an upward trajectory throughout the rest of the year," he said in a release.

Within the index, home prices have seen the strongest growth, followed by employment activity. Single-family permits, however, have only reached 50% of normal activity and "remain the sluggish element of the index," NAHB Chief Economist Robert Dietz said. ​

The "slow but steady" phrase has been continuously used to describe the housing market's recovery after the crash. Experts hope that the absence of a major spike in new construction will make the recovery more sustainable in the long-run. June housing reports were mostly positive after a disappointing May. Builder confidence slipped just one point to a score of 59, housing starts increased 4.8% in June, existing home sales rose 1.1%, new home sales surged 3.5% to an eight-year high, and pending home sales inched up 0.2%.