Boise, Idaho. Besides having a happ
mentioned as a small, but strong re
it first on its 2005 list of the be
Burns Real Estate Consulting puts i
markets headed for a potential hous

John  a real estate marke
both Boise and parts of the Idaho F
housing appreciationwise.

"They're getting migration of peopl
Annual price increases on housing h
6 percent over the past couple of y
out-of-proportion -- increase of 14

El Paso, Texas. Real estate market
that Texas is a value buy. Local Ma
of overvalued and undervalued marke
were in the Long Horn State, with E
nation (the other undervalued Texas
and Houston).

"If I was an investor in real estat
consider Texas markets," Winzer say
years ago. They're at the end of th
awhile, but quite likely, as econom
there, especially since prices are

Fortune ranked El Paso third on its
appreciation in the next two years;
first.

Albuquerque, N.M. This is another c
Estate's Housing Cycle Barometer, a
susceptible to a housing bubble. It
that should experience growth in th
increase (18 percent, according to
2005. Locals say the area attracts
housing prices; once they discover
want to leave.

Seattle, Wash./Portland, Ore. The o
isn't great. The area lost jobs in
in terms of housing price appreciat
for them is a restriction in supply
prevented the normal progress of bu
core to find cheap land in the subu
available units. (Forbes Magazine l
to live in the country; Portland wa

"Portland and Seattle have really b
Richard Gollis, principal of San Fr
Concord Group. "Portland is startin
product, which is large-scale, high
thing is happening in Seattle. Peop
tech market are older now and have

Salt Lake City Nothing drives housi
Salt Lake City has both. Job growth
low, the housing costs-to-income ra
buyers a lot of house for the money
percent increase in appreciation in
quarter 2005, and Money magazine ra
for growth over the next two years.


Raleigh, N.C. This city is right in
what real estate market consultant
are people from northern states who
then moved back, but only halfway.
Carolinas, parts of Mississippi and
what they were used to up North, wi
closer to friends and family. John
dead last on its list of markets th
and the NAR shows a healthy appreci
2005. The median house price of $18
of $213,000, giving it nice room to
do just that, by about 5 percent pe

Philadelphia Major northeastern cit
like this, so we were somewhat surp
favorable position on several repor
percent increase in appreciation be
encourage people to buy homes, but
panic purchases. The housing-cost-t
favorable compared to other large n
Washington, D.C., and Newark, N.J.,
while job growth is small, it's mov

Atlanta Home to several major corpo
airport, Atlanta also is the second
Housing prices have enjoyed steady
increases that have pushed other la
who have tired of long commutes hav
development close to transit; the m
gained national attention as a true
jobs and cultural activities in dow
growth in values for the next two y

Little Rock, Ark. Surprised to see
club. It's not exactly on a lot of
market. But it popped up in a favor
related to housing appreciation, fr
7.7 percent change from 2004 to 200
of increase should hold fairly stea
Market Monitor's position as one of
country. At an average price of $15
percent below where it could be, Wi

Cincinnati, Ohio, and Birmingham, A
NAR's median price appreciation lis
percent increase from 2004 to 2005,
Cincinnati kicked its butt on the H
market's susceptibility to a housin
on the risk assessment.) Pricing in
under what the experts say it shoul
nice, steady growth. The forecaster
markets.


10 bubble sitters -- appreciation m
Washington, D.C. The D.C. market ra
facing a potential housing bubble,
report that it's taking longer to s
builders are offering significant i
quickly. Fortune's survey suggests
Still, D.C. has a healthy economy a
its list great places for business
business, there are home buyers.

Ft. Myers/Cape Coral, Fla. Is it ov
reports annual housing appreciation
between 2001 and 2004 and then a 33
topped out in housing appreciation?
say the real estate gurus. The mark
reasonably priced than Sarasota (43
Naples (a whopping 72 percent overv
building in the market is staggerin
have strong presences in Lee County
affordable, have increased as much

Chicago The Midwest hasn't had the
cities on the two coasts and those
as susceptible to a pricing bubble
the country, the real estate pros s
to income in the market far exceeds
job growth has been sluggish. "The
housing," Gollis says. "We're alway
affordability growth or lack thereo

Honolulu Because of its remote loca
anywhere else. After a drop-off in
started returning to the island, Wi
that has contributed to rapid incre
median price of an existing single-
NAR. By end of the 2005, it was exp
economy on the island is good, Winz
Japan. Fortune predicts a small, bu
followed by a slight drop-off in 20

Tucson, Ariz. Tucson's housing mark
construction is roughly one-fifth o
joined its much larger neighbor in
investors. The NAR reported a 32-pe
months. The current pricing is abou
Local Market Monitor says. The pros
2006, with an increase that roughly
year, followed by a decline in pric

San Francisco. With a median home p
2005, according to the NAR, San Fra
expensive cities to live in, outpac
Housing prices are unlikely to decl
by hills and its famed bay -- there
less expensive in the city. But rea
who can afford to buy at those pric
much higher.

Detroit Detroit hasn't been on anyo
In the most recent report from the
markets in the country to show a de
year, with prices down about a half
Monitor has been tracking since 200
from 7 percent that year to just 2
any better performance in the marke
Consulting actually gives the Detro
based largely on a large loss of jo
any metro market in the state.

Minneapolis Minneapolis made our li
when the majority of metro markets
appreciation, it barely surpassed t
NAR. And for the next two years, th
even see the left side of a decimal

Baltimore Like its pricier neighbor
Baltimore has seen double-digit inc
But several reports indicate the ma
history. Local Market Monitor indic
percent; Fortune's number crunchers
this year, followed by a small drop
prices have leveled off.

Denver Gollis has been big on Denve
that went through a rough time -- i
years back -- but it is returning t
the attention of national builders
construction underway and the Stapl
largest projects of its kind in the
year when the vast majority of mark
appreciation, Denver's rate was 4.4
reports that it hasn't been above 5
Fortune predict that for the next c
appreciation won't see half that nu

10 bubble busters -- values expecte
Las Vegas What goes up must come do
its list of 100 metro markets for h
years, predicting a two-year combin
13 percent. Local Market Monitor re
appreciation between 2003 and 2004,
third quarter of 2005, evidence tha

"Las Vegas is a very interesting ma
moved in, but construction has kept
recently, I didn't consider it an o
increases will last. There's really
out there if there is a demand for

Sacramento, Calif. We're not quite
but it showed up on just about ever
Local Home Value Ratings rates the
Housing Cycle Barometer also lists

"Sacramento, we think, has topped o
"There is just so much (housing con
steady-as-she goes market and has a
the land market has gotten ahead of

Phoenix The bigger they are, the ha
largest housing market in the count
been running at 65,000 new units pe
increasing at rates of nearly 30 pe

"You can't sustain 30 percent incre
"Of all the 100 markets we review,
Phoenix, you should sell, because v
Gollis says his firm has been study
what it sees. "It's had an incredib
"The land market has accelerated dr
percentage of the home price has go
concerns about going long in Phoeni

Boston This one is in Winzer's back
Mass., so he sees what is happening

"Until about a year ago, homes woul
says. "Now they're sitting on the m
prices dropping rapidly here -- or
while real estate prices escalate r

"In markets that are well-overprice
people just won't sell," he says. "
people's emotions getting involved.
as long as they can to get the pric

They might not be able to hang on f
list of markets likely looking at a
market is 33 percent overvalued.


Los Angeles The City of Angels has
how a lack of new housing near empl
Affordable housing has been an issu
one of the least affordable places
prices consuming 91 percent of inco
Burns Real Estate Consulting. The m
home was $568,000 at the end of 200
reports. Plus, job growth is virtua
estate market consultant Gollis to
coastal markets are topping out in
drop-off of nearly 8 percent in hou
putting it in 95th out of 100 marke

Naples, Fla. At 72 percent, Naples
of overvalued markets in the countr
No. 1 at 86 percent overvalued). In
Florida markets by a good $100,000
more affordably priced options for
It is no understatement that entire
markets that are the most overvalue
substantial correction," Winzer say

Miami/Ft. Lauderdale, Fla. Rapid, d
years -- and an extraordinary amoun
condo market -- is the reason many
market just can't sustain much more
probably won't decline, they say, b
South American and European buyers,
to absorb the entire available inve
affordability is an issue in the ma
ratio "unfavorable."

Edison and Newark, N.J. As far as t
these two cities have pretty big ta
appreciation. John Burns Real Estat
ahead of Los Angeles, Miami and Was
potential housing bubble. It gives
scale, attributable largely to the
highest housing-cost-to-income perc
Fortune predicts a very modest 1.2
year for Edison that would be wiped
The situation is similar in Newark,
increase this year will be canceled
year.

Nassau/Suffolk, N.Y. Otherwise know
the country on real estate consulta
potential housing bubble. (Modesto,
Fortune predicts a loss of about 6
two years.