Housing sales have been picking up on some major cities, and financial-services firm Fiserv expects the growth to continue, in spite of all the recent economic troubles.Picture an old-fashioned scale with two sides, like the scales of justice. On one side of the scale, stack up the facts of fewer mortgage delinquencies, fewer foreclosures and greater housing affordability. On the other side, pile on the southward-sailing stock market, flat employment numbers, Europe's fiscal woes and the ratings downgrades by Standard & Poor's.

It's hard to imagine that the first side would have the heft to balance out -- or even outweigh -- the second side for the U.S. housing market. But that's just what seems to be happening, at least in some markets, where affordability is still pushing home prices upward.

Where to Expect Growth

By the end of the year, financial-services-technology firm Fiserv expects housing prices to stabilize in two-thirds of metropolitan areas, according to the latest analysis of home prices in 380 U.S. markets -- based on the Fiserv Case-Shiller Indexes -- released Tuesday. That number will increase to 95% of all metro areas by the first quarter of 2013. "Relative to family income levels, the average U.S. home is now only 5% more expensive than it was in 2000," David Stiff, Fiserv's chief economist, tells DailyFinance.
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He added that Monday's S&P downgrade of Fannie Mae and Freddie Mac could hurt consumer confidence, but "the resurgent demand for Treasuries could cancel out" the downgrade.

During the next two years, Fiserv projects that these markets will see the biggest price increases: Tacoma, Wash. (24.9%), Palm Bay, Fla. (18.3%), Seattle (10.2%), Tucson (10.2%) and Memphis (10.%).

The company also expects prices to grow in areas such as Washington, D.C., San Diego and the San Francisco Bay Area in California, where strong labor markets and desirable geography will prompt home buyers to get in at low prices. Ex-burbs continue to recover more slowly than metropolitan areas because gas prices and long commutes are dissuading buyers.

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Greed caused the real estate and stock market bust! Few have been investigated and the rest made a killing.
People wake up vote the bums out not according to party affilliation. 50% on food stamps, prolong unemployment ins., welfare to anyone, 47% pay no tax is that fair, and too many tax loopholes. 0% downpayment with no actual means to pay why, I'm surprised the real estate market tanked? Barney Frank, yes Bush, Obama and his doners, Pelosi say how did she make 40 million as a House rep? Take a gander at the rich bastards running our country and then you'll see it's a "CON," most are multi-millionaires after many years self serving themselves and special interest groups. Want to get mad ask Al Gore how he became a Billionaire wasn't he in DC and almost became Pres.? Let's demand strict changes such as elimination of the Fed, Education, and any dept. that isn't necessary. We the people were given a Republic that has been revearsed and now a Democracy with Socialistic roots and entitlement mayhem taking down this great country. Oh, I also say change the way we use the electoral vote for our Presidents. Why is it that New york, California automatically goes to a Democrat 90% of time. I say divide up each state so the people get their electoral vote counted for both parties. That will make every state equal and force the two candidates for president to go there and be heard rather than watching one or two states decide the election! Are you not sick of hearing about Florida, Ohio etc. and never your state and your vote actually making a difference? As a Vietnam era Vet I require more than a pat on the back. At least protesters who spat and called us baby killers did us a favor. Now people please read the news get informed and make your vote count. Remember these clowns in Washington were hired, yes hired by you if you voted so "DO-IT!"

August 10 2011 at 5:02 PM Report abuse rate up rate down Reply

AOL down 26%---nice job Huffington. Get it through your thick skulls-Liberalism does not work and does not sell, PERIOD.

August 10 2011 at 1:30 PM Report abuse rate up rate down Reply

I am tired of the hype, I have a friend whose lot has been on the market for 5 years (do the math 2007 to 2011)
just when the down turn started -- it will take 10 years for the real estate to get back to maybe normal.
That's just what the history tells US after the depression it wasn't till the 1950's when the boys came home from WWII and trac-housing and the suburbs started in the metro areas. Who are you kidding. GOT HISTORY?

August 10 2011 at 12:03 PM Report abuse +1 rate up rate down Reply
1 reply to jkennedy806's comment

J... you don't understand. Palm Bay is only going back to "normal" It was so ******* up by investors with zero down, hoping for the quick buck. Vacant land used to sell for 1,700 dollars for a lot... that was the going price for a decade before the boom. That same lot peaked at 60,000 in the crazy days.. Your friend won't sell until they drop the price down to 2,500... that is where normal is and will be for decades to follow. Palm Bay is a myth created by the General Development Corporation and because too many kids watched Walt Disney.. Palm Bay is Palm Hell. it's junk, it'll always be junk, and this article's author doesnt know shyt fro shinola....


August 10 2011 at 2:41 PM Report abuse rate up rate down Reply

Real Estate has been proven to be Fake Estate----We are doomed. God Bless you --get ammunition.

August 10 2011 at 7:42 AM Report abuse rate up rate down Reply

I live near the Palm Bay Fl area. If ever there was a place heading for the cellar it's Palm Bay. Lots of crime, vacancies, primary employer, the Space Center getting dorment A 50 year old defunct developer's "paradise" with little city water or sewer and the roads falling apart.

August 09 2011 at 6:21 PM Report abuse rate up rate down Reply
1 reply to stupot1's comment

PALM BAY is the shitola-hole of east central FL with nothing to offer. It's a dangerous place to live, if ti's not crime it'll be a firestorm or foreclosures which will ruin any "investment" Advice? Forget this BS article and forget about Palm Hell.

August 09 2011 at 8:22 PM Report abuse rate up rate down Reply

To predict the RE market out one year , anywhere, you would have to be able to predict the economy and the credit markets......how can anyone do that consistently without knowing all the varaiables that will come into play....it's absurd....with enough "experts" making predictions of course someone might guess right, but it's still just a guess that happened to be the right one....It's like a lottery winner saying he picked his number with skill, not chance. These guys are arguing their position, just like the government, without any certainty but blind luck.... if the macro economy gets worse will the regional positives take those markets higher....probably not.

August 09 2011 at 2:47 PM Report abuse rate up rate down Reply

I agree with donut999- but the press continue to write non scense! They like to make everything look good, and try to keep the average reader in the dark. It's a shame the media has become so LAME! You no longer write facts, you no longer write the truth. You should all be writing comic books, because everything you write is a joke!

August 09 2011 at 1:28 PM Report abuse rate up rate down Reply

Haven't we heard this before.

August 09 2011 at 12:30 PM Report abuse rate up rate down Reply

What a dumb article. Of course prices will go up in selected areas, particularly the ones that got hit the worst. Is it news that a home that had a market value of $250,000 in the middle of 06 will actually climb back from $175,000 to
$200,000? I guess so, but not to the extent this article portrays it. Does not help that homeowner much. He is still underwater because he cashed in the equity in 06 and now owes $220,000 and still stuck, just quite as deep.

August 09 2011 at 12:11 PM Report abuse rate up rate down Reply
Chris Ross

good point

August 09 2011 at 10:57 AM Report abuse rate up rate down Reply