Job creation and household formation are major drivers of the trend in home sales. Job creation has been strong but inconsistent over the last year. However, some areas have shown significant improvements.

Capture

Notably, several formerly distressed markets have shown strong gains in employment though their unemployment rates remain high. These include Reno, Las Vegas, Riverside, and Orlando. Supply issues have weighed on job creation in the local construction industries for several of these markets as has a sluggish recovery of mortgage finance sector jobs.

Tech markets like San Jose, Austin, San Diego, and San Francisco have done well as have the oil-boom areas of Fargo and Bismark. Grand Rapids has been a notable bright star in Michigan. Several markets in Florida have also posted steady improvements.

Where does your metro area stand? For more information on recent trends in your state, see the Local Market Reports for the first quarter of 2014.