No. 1 2013 market: Riverside, Calif.
Projected median price gain:
Property values in this city 60 miles east of Los Angeles tumbled nearly 70% during the housing bust, but have been rallying back sharply for more than a year as buyers snap up bargain-priced homes.
"Riverside was one of the hardest-hit markets in the country, but now its affordability is extremely high," Humphries says.
Median price have returned to early 2003 levels, "and when you pair that with today's 3.5% 30-year fixed mortgages, anyone who can reasonably qualify for a [Federal Housing Administration] loan can afford a home there," he says.
That's why Zillow expects Riverside's median home price to jump 12.5% this year, to $222,108.