10- Seattle, Wash.
Though Seattle doesn’t suffer from oversupply, inventory last year doubled to 1.8%, from 0.9%, which would be more problematic if 1.8% wasn’t the eighth lowest rate in the country.
9- Charlotte, N.C
While prices here continue to climb both on a square foot and median price level, there was a slight increase in unsold inventory last year.
8- Providence, R.I.
Though prices here are falling, vacancy rates are extremely low and falling further (dropping to 1.6% at the end of 2007, the sixth lowest rate in the nation, from 1.8% at the end of 2006).
7- Denver, Colo.
Overbuilding and a high foreclosure rate stymie Denver’s housing market, which last year saw a 6.3% drop in prices.
6- San Antonio, Texas.
Prices here rose 7.9% last quarter, based on National Association of Realtor estimates, and its foreclosure rate was only 1% (problem markets like Atlanta have a rate of 2.5% and crashing markets like Detroit are over 4%).
5- Kansas City, Mo.
Prices in Kansas City reached highs in the second and third quarters of 2007, before dipping in Q4.
4- Austin, Texas.
In this affordable Lone Star State market, construction rates are in line with job growth and population increases, and as a result vacancies have remained steady at a healthy 1.5%.
3- Salt Lake City, Utah.
Through the housing boom, Las Vegas and Phoenix lead the nation in job growth, largely as the result of a flood of construction-related jobs.
2- San Francisco, Calif.
The city by the bay’s conforming loan limit recently jumped from $417,000 to the maximum $729,750, which makes credit a simpler affair for many of the city’s home buyers.
1- San Jose, Calif.
In what is largely one of the least affordable markets in the country, sellers continue to see high returns from real estate as tech money and venture capital money lift that economy.