Housing markets with the highest price increases in the recent past are certainly of interest to real estate investors as they can indicate locations where current demand-supply fundamentals are in favor
price increases. [You can see here summary of the
latest mortgage rate forecast]
However, it should be kept in mind that such market conditions may change and price increases my decelerate or even turn negative if
demand in these markets slows down or excessive amount of new space enters the market. Any assumption of continuation of current momentum in these housing markets is predicated on the continuation of current local market imbalances in favor of demand.
Ideally, such markets should be identified using monthly data for the last 3-6 months that are seasonally adjusted. However, such data are not available at the metropolitan level so the "best" markets presented in the articles below are based on annual changes, which can be misleading in terms of what has been happening in these markets in the recent months.
Top Housing Markets in Terms of Annual Price Increases, Second Quarter of 2009
Best Housing Markets in the First Quarter of 2009
Best Housing Markets 2008
Best Housing Markets 2006
