Values are expected to increase about 25%. Seattle, Tucson and Palm Bay, Fla., also are expected to do well. Bringing up the rear will be South Florida, Las Vegas and Phoenix.
Real-estate prices in most parts of the country haven't stopped falling yet, but people are already talking about which cities will recover first, and how quickly.
New data from Fiserv Case-Shiller includes predictions for what will happen to real estate in 384 markets in 2012 and 2013.
Based on the data, the market that can expect to see the greatest, fastest recovery is Tacoma, Wash.
Fiserv predicts that property values in Tacoma will increase 24.9% by the first quarter of 2013.
NAHB survey finds builders pessimistic. Unable to move up to new homes, homeowners are remodeling, another report finds.
This is no surprise: Builders are still glum about the state of the new-home market.
The National Association of Home Builders/Wells Fargo Housing Market Index for August remained at 15, unchanged from last month. The index has been below 20 for the last two years. A level of 50 indicates an even outlook between optimism and pessimism, and the number hasn't been that high since 2006.
"Builders continue to confront the same major challenges they have seen over the past year, including competition from the large inventory of distressed homes on the market, inaccurate appraisal values, and issues with their buyers not being able to sell an existing home or qualify for favorable mortgage rates because of overly tight underwriting requirements," Bob Nielsen, chairman of the NAHB, said in a news release.
He noted that 41% of builders said they had lost sales contracts because prospective buyers couldn't sell their current homes.
Zillow traces the ties among stars who buy, sell and rent from each other. I once lived across the bay from Cher. She had a better view.
We were going to write about something weighty this afternoon, like the need for energy-efficient air conditioning, but it's almost the weekend so let's do something fun instead.
Zillow has put together a post about "six degrees of celebrity real estate," noting that celebrities often buy, sell and rent houses from each other.
I'll start with Cher, whose former Miami Beach waterfront mansion is for sale for $10.2 million, slashed from $16.9 million in 2008. Cher sold the property for $4.35 million in 1996 to former Calvin Klein CEO Barry Schwartz, who sold it for $9.7 million in 2006 to the current owners, who renovated before putting it back on the market. You can rent it, too. Janet Jackson and Julio Iglesias did.
This property is not on the ritzy Miami Beach island where I fell off a bicycle and cracked my shoulder a few years ago. It is on the Miami Beach island that is across the bay from the much less ritzy Miami mainland neighborhood where I have lived several times. On our side, the water view is at a public park. That's my six degrees of separation from Cher, unless you want to count seeing her in concert.
Cher is actually in the middle of Zillow's chain of six degrees of separation, which starts and ends with actor Charlie Chaplin, who died in 1977. His former home in Lo Angeles, which is on the market for $1.72 million, has also been home to Robert Downey Jr. and Kelly Osbourne.
Hamptons mobile-home community offers a chance to mingle with the rich and famous for a lot less. It's not the only beachfront mobile-home development.
It's summertime, and you're thinking it's time to go to the beach. How about a getaway to the Hamptons in New York?
Our listing of the week is an affordable (by Hamptons standards) little place in a beachfront community with a pool, clubhouse, game room and security, plus 900 feet of pristine beach.
For $650,000, you can own this beachside trailer, which is technically a condominium. That's $1,040 per per square foot for the 625-square-foot mobile home, which has two bedrooms and one bath. You do get an ocean view. "Bright, sunny and immaculate; for surfers and beach lovers alike," the listing says.
If this trailer is a little outside your financial comfort zone, Curbed Hamptons wrote about two others on the market, also two-bedroom, one-bath, for $575,000 and $500,000. They're all part of the Montauk Shores Condominium, which started as a campsite in 1947. It became a condo development in 1976.
In a profile of the community last year, The New York Daily News wrote:
There are no cars on cinder blocks, no Lynyrd Skynyrd pumping from a boom box, and the laundry lines just show wet suits drying in the sun. The lawns and decks are decorated in different styles, some with gnomes, others with starfish, some with whales.
You can read the stories of three residents, including one who downsized from a $2 million-plus, 5,000-square-foot house.
Roofs of sod and living plants are becoming more popular, popping up in the Hamptons, Missouri, Poland and elsewhere.
Twenty-three years ago, two architects in the Hamptons sketched out a plan for their pool house.
It would be two stories, in the style of the traditional Kampong stilt houses they had seen in Malaysia — common in U.S. coastal areas, too, but apparently not in the Hamptons. It would be a peaceful retreat, designed for a small space.
In 2011, the pool house was finally completed and topped off with a sod roof, like those you see in old movies about the English countryside. "We would keep reviewing our original design and decided that it stood the test of time," Phil Smith, who built the pool house with his partner, Doug Thompson, said to The Wall Street Journal.
Unlike many California cities, the tony enclave has no historic-preservation law. The potential destruction of a 1955 home designed by a famous architect has put the issue on the table — again.
The 7,900-square-foot house was marketed as a teardown, despite the fact that it was designed by Richard Neutra, one of Los Angeles' pre-eminent architects of the 20th century.
But the 1955 midcentury-modern home on two acres next to Madonna's California place has become a rallying cry for those who say it's finally time for Beverly Hills to join other Southern California cities and enact a historic-preservation ordinance.
"There is something wrong with having a historically important building and you take out a demolition permit and 10 days later you can take a sledgehammer to it," Beverly Hills Mayor Barry Brucker said to The Associated Press.
According to the mayor, the city hadn't needed a preservation ordinance before because its residents wanted to restore architecturally significant properties.
But new residents want to tear down the smaller — by Beverly Hills standards — homes with a history so they can build big McMansions. The average size of a new single-family home in Beverly Hills is more than 7,300 square feet, up from 4,200 square feet in the 1970s, The AP reported.
Baltimore cuts off money, which threatens the museum's survival. Former Poe homes in other cities are doing better.
Is Edgar Allen Poe's home in Baltimore going to be a museum nevermore?
The small brick house, where the author lived from around 1833 to 1835 after being kicked out of the U.S. Military Academy at West Point, has been maintained as a museum for decades. It was saved from demotion in 1941 when the city built housing projects at the site.
But, facing tight budgets, the city of Baltimore for a second year has refused to provide funding for the house, and its curator says it is unlikely it can become a self-supporting museum.
"It would be ironic, after all these years of aggressively and actively promoting the Poe House and the Poe grave, to have it close," Jeff Jerome, who has been the museum's curator for more than 30 years, told The New York Times.
Poe lived in the house at 203 Amity Street with his aunt, his grandmother and two cousins, including Virginia, whom he married when she was 13 and he was 27.
The 2.5-story house, once half a duplex, is now attached to the housing projects and is owned by the Baltimore Housing Authority. It has a parlor and kitchen on the first floor, two bedrooms on the second floor and one attic bedroom, which some believe was Poe's room. Others believe he used the back bedroom on the second floor.
Poe has strong ties to Baltimore, which named its pro football team the Ravens in honor of his famous poem. Poe died and was buried in Baltimore in 1849, at age 40, though he was living in the Bronx at the time.
One lender will write down mortgages to 95% of home value in exchange for sharing future appreciation. Should more lenders follow Ocwen's lead?
One foreclosure-fighting tactic that is often discussed but seldom done is principal reduction: forgiving some of the mortgage debt on underwater homes.
The rationale is that people who owe more than their homes are worth are more likely to default, which will end up costing the banks more and add more homes to the tsunami of foreclosures dragging down the housing market.
Ocwen Financial has rolled out a major principal-reduction program in 33 states, and is awaiting regulatory approval in others, that will award homeowners a mortgage modification that writes down the principal owed to 95% of the home's market value.
"You have folks breaking their necks to make payments on a home where there is no hope in their lifetime of it regaining equity," Ocwen Executive Vice President Paul Koches said to The Palm Beach Post. "A homeowner in a negative equity situation is one-and-a-half to two times more likely to go into delinquency."
The modification comes with strings attached: If the home rises in value, the homeowner will have to share 25% of the profits. Plus, the homeowner will have to make payments on time for three years to earn the principal write-off.
Not all Ocwen customers will be eligible. Only those borrowers who can demonstrate that their current payments are a hardship can participate, a number estimated at 53,000 nationwide.