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.
No. 5: Kennewick - Richland - Pasco, WA
Median sales price (Q4'10) $183,000
Unemployment rate (Dec '10) 7.8%
Foreclosure rate (2010) 1 in 161 units
No. 4: Portland - S. Portland - Biddeford, ME
Median sales price (Q4'10) $223,000
Unemployment rate (Dec '10) 5.9%
Foreclosure rate (2010) 1 in 150 units
Homes affordable at median income: 76%
No. 3: Des Moines, IA
Median sales price (Q4'10) $151,300
Unemployment rate (Dec '10) 6.1%
Foreclosure rate (2010) 1 in 79 units
No. 2: Buffalo - Niagara Falls, NY
Median sales price (Q4'10) $126,500
Unemployment rate (Dec '10) 8.2%
Foreclosure rate (2010) 1 in 332 units
Homes affordable at median income: 86%
No. 1: Washington, D.C. - Arlington, VA - Alexandria, VA
Median sales price (Q4'10) $331,100
Unemployment rate (Dec '10) 5.7%
Foreclosure rate (2010) 1 in 49 units
Homes affordable at median income: 79%