Using current permits, home prices, and employment data, the National Association of Home Builders’ Leading Markets Index measures market conditions by comparing them to those that existed before the recession and housing crisis. According to the results of the most recent index, the national housing market is 85 percent back to normal and 52 of the 350 metro areas analyzed have now returned to, or exceeded, pre-recession levels of activity. Rick Judson, NAHB’s chairman, said the index helps illustrate how far the U.S. housing recovery has come and how much further it needs to go. Among the highlights of the report, smaller cities account for 43 of the top 50 markets, though major metros such as Baton Rouge, Honolulu, Oklahoma City, Austin, and Houston also have scores indicating they are now exceeding their previous norms. Of the 350 cities covered by the index, 118 showed levels of activity at least 90 percent of their pre-recession norm. More here.