Strongest Housing Markets This Year

Inman News examined housing, economic and demographic data for metropolitan areas nationwide in compiling a list of housing markets that are showing signs of strength and may outperform other housing markets in 2011 in several key metrics. We also asked a host of real estate search and data companies to share research and methodology to identify high-performing real estate markets across the U.S.
Real estate markets in the Midwest and Northeast dominated our list of fast-rising real estate markets nationwide identified in the Inman News analysis, as many markets in the Sun Belt states are still struggling through the housing downturn.
Nationwide, unemployment is high, home prices are flat and trending lower since the expiration of the federal homebuyer tax credits, and overall sales fell last year compared to the prior year.
Stan Humphries, chief economist for Zillow, said it's unlikely that "substantial price appreciation" will occur "in any market nationwide in the near term."
"Nationally, I don't think we'll see a bottom in home prices until later this year and once they hit bottom we're looking at a prolonged period of time where housing appreciation is below historical norms," Humphries said.
Nevertheless, Inman News identified some markets with significant price appreciation as well as a vibrant job market, a high level of home affordability, low foreclosure activity, and other indicators for a healthy housing market. Of the 10 markets identified in the full report, most have populations below 250,000. In addition, jobs in the health care industry and public sector, especially, buoyed employment in these areas.
To compile the list, Inman News considered markets with low unemployment rates, high median sales price growth, growth in the number of building permits issued, a rise in in-migration from other states, population growth, projected job growth, affordability, low foreclosure activity, median household income growth, fewer average days on market for for-sale properties, and growth in occupied housing units. The markets are ranked according to population, sales volume, and median sales price appreciation. Population was weighted most heavily in the rankings, followed by sales volume in proportion to population and rate of price appreciation.

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