5 strongest and 5 weakest housing markets

Veros Real Estate Solutions recently released its housing market forecast for the 12-month period beginning on March 1, 2011, which highlighted the five strongest and the fivest weakest markets in the United States.

Veros found Anchorage, Alaska, to have the strongest home price appreciation with an increase of 3.8 percent, while Reno/Sparks, Nevada, is predicted to have the weakest home price appreciation with a decrease of 6.4 percent.

Other top markets showing strength included Amarillo, Texas; Shreveport/Bossier City, Louisiana; Buffalo/Niagra Falls, New York; and Pittsburgh, Pennsylvania. Nine out of 10 of the stronger markets had local industry growing or maintaining, indicating a stronger sense of economic security that could affect consumer confidence, according to Veros.

Rick Sharga, senior vice president of RealtyTrac, an online foreclosure marketplace, told MarketWatch that some markets may show growth, but really the foreclosure numbers may be skewed.

"There are some artificial drops in foreclosure activities in the harder-hit areas," Sharga said. "It's not an improvement, just a temporary reprieve."

The remaining weaker markets were Boise City/Nampa, Idaho; Portland/Beaverton, Oregon/Vancouver, Washington; Orlando/Kissimmee, Florida; and Las Vegas/Paradise, Nevada. Eight of the 10 weaker markets appeared to be held back by high unemployment rates, as tourism is a significant part of their local economies. The five worst markets have an average unemployment rate of 11.2 percent, while the national average is 9.1 percent, according to MarketWatch. 

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