Local housing conditions are getting better, though there may need to be more work done in order to encourage more individuals to take out a mortgage and acquire title insurance.

A total of 56 of the 350 metropolitan areas measured throughout the country reached normal levels of housing activity and economic progress during August, according to the Leading Markets Index completed jointly between the National Association of Home Builders and First American. The latest figure was seven metro areas higher than 12 months earlier.

This helped the overall level of normal housing and economic progress rise to 89 percent of normal levels, the report showed. Nearly 80 percent of those markets polled rose compared to the same point last year.

"With the national tally only reaching 43 percent of normal, single-family housing permits continue to be the lagging component of the index," said David Crowe, chief economist at NAHB. "The big bright spot is employment, where the number of metro areas having reached or exceeded their norms grew from 26 to 46 in a year."

Housing market, economy experience some improvement
Many Americans may look at market progress cautiously, though there are still reasons to be optimistic. According to the July edition of the National Housing Survey from Fannie Mae, just 8 percent felt that home prices would drop in the next year, while another 42 percent thought that prices would increase.

"The continued cautious sentiment expressed across the range of consumer indicators this month gives weight to our view that the first phase of the housing recovery is decelerating, and 2014 will be a year of mixed housing outcomes with home prices rising more slowly and home sales falling slightly," said Doug Duncan, senior vice president and chief economist at Fannie Mae. "We have always believed that for the housing recovery to be considered robust, we will need strong and sustained full-time job and income growth."

Many people showed concern for the current economic situation. Nearly 60 percent noted that they felt the economy was headed in the wrong direction, 5 percentage points higher than the previous month, the report showed. However, nearly 30 percent noted that their earnings improved in the past 12 months, the highest level recorded in the survey's history. Another 36 percent noted that their expenses were on the rise during the past year.