WASHINGTON - The National Association of Home Builders/First American Leading Markets Index (LMI) reported markets in 59 out of roughly 350 metro areas nationwide returned to or exceeded last normal levels of economic and housing activity, representing a net gain of one from the preceding month.

Based on current permits, prices and employment data, the nationwide average is running at 87% of normal economic and housing activity, with 32% of metro areas seeing a higher score this month and 84% showing an improvement over the past year.

“Despite the cold weather that has constrained economic and housing activity across much of the nation this winter, markets are returning to normal levels,” said NAHB Chairman Kevin Kelly. “As the job and housing markets continue to mend and the onset of spring releases the pent-up demand for new homes, this will bode well for the remainder of 2014.”

“The strong energy sector is at the forefront of the recovery and centered in many small and mid-sized markets in Texas, Louisiana, North Dakota and Wyoming,” said NAHB Chief Economist David Crowe. “In fact, these four states account for eight of the top 10 markets on the LMI and 45% of the markets that are at or above normal.”

For major metros, Baton Rouge, LA, tops the LMI list, scoring 41% higher than its last normal market level. Other major metros at the top of the list include Honolulu, HI; Oklahoma City, OK; Austin and Houston, TX; and Pittsburgh and Harrisburg, PA. Smaller metros that saw levels rise included both Odessa and Midland, TX; Casper, WY; Bismarck, ND; and Grand Forks, ND.

“The number of markets on this month's LMI at or above 90% of previous norms has climbed to 130 - a positive trend to watch as the year progresses,” said Kurt Pfotenhauer, vice chairman of First American Title Insurance Co., which co-sponsors the LMI report.