Albany, Baton Rouge and Charlotte: these are among the cities builders should keep an eye on.

Markets in 56 of the 350 metro areas nationwide returned to or exceeded their last normal levels of economic and housing activity, according to the Leading Markets Index (LMI).

Compared with the second quarter of 2013, the single-family index increased three points to a level of 56, which is the highest second-quarter reading since the inception of the index in 2008.