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TheStreet Open House

5 Best Housing Markets for 2013

Fourth-best market: San Francisco
Projected median price gain: 7.3%

San Francisco ranks fourth on Zillow's list because the site technically forecasts the Bay Area's median price gain at 7.325% for 2013 -- a hair above fifth-place L.A.'s 7.316%.

Humphries says Frisco's home values are rising sharply because the Bay Area's famous tech companies are creating plenty of high-paying jobs.

"You've got a lot of job growth in the tech sector, a lot of income growth from IPOs like Facebook's (FB) and strong stock performance by companies like Google (GOOG)," he says.

But the economist adds that the City by the Bay's $526,200 current median home value is still 26% below a $710,800 peak reached in January 2006.

In fact, prices are back to January 2004 levels -- which Humphries says leaves plenty of room for additional gains in 2013.

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