More signs the U.S. housing market is coming back: 58 out of the 350 areas included in an NAHB index have met or exceeded their normal levels of activity, the group said.

The figures come from the National Association of Home Builders/First American Leading Markets Index. It represents a gain of two from the previous month. Overall, the housing economy is at 87 percent of its normal levels, the association said.

"Firming home prices are hastening the return of normal economic and housing activity in an increasing number of markets," said NAHB Chief Economist David Crowe. "The healthiest markets continue to be centered in smaller metros that boast strong local economies, particularly in the oil and gas producing states of Texas, North Dakota, Louisiana and Wyoming."