Living in a hot real estate market offers both home owners and home buyers some consolation amid this sustained economic downturn. But strong sales alone don't constitute a hot market - it takes rising prices, too.
Online real estate valuation and search company Zillow has calculated the U.S. metro areas that have experienced the largest gains in home values over the past five years, based on the company's home-value estimates and its Zillow Home Value Index, which is generated from those value estimates.
The five-year gains in estimated value range from 0.6 percent to 16.9 percent, while the estimated gains in dollar value range from $667 to $21,444.
See full report: 10 Metros with Greatest 5-year Gains 
Methodology: Zillow's Zestimate home valuations are the basis for the Zillow Home Value Index. A Zestimate is Zillow's estimate of the current market value for a home. The Zillow Home Value Index is the median Zestimate valuation for a given geographic area on a given day. Zillow generates valuations several times a week on more than 70 million homes, or roughly three out of four homes in the U.S., and calculates historical values dating back to 1997.
The statistical models underlying the Zestimates control for the mix of housing for sale by finding patterns in the types of homes that are selling and then applying these patterns to all homes. If only a few homes of a certain type sell in a given period, the models can extract the information from those sales and apply that information to all homes of that type.
Here are the top five hottest markets:
5. Yakima, WA
July 2011 Zillow Home Value Index (ZHVI): $132,263
ZHVI 5 years ago: $127,746
Value difference (by percent): 3.5%
Value difference (in dollars): $4,517
4. Tulsa, OK
July 2011 Zillow Home Value Index (ZHVI): $111,398
ZHVI 5 years ago: $101,802
Value difference (by percent): 9.4%
Value difference (in dollars): $9,596
3. Oklahoma City, OK
July 2011 Zillow Home Value Index (ZHVI): $111,737
ZHVI 5 years ago: $101,532
Value difference (by percent): 10.1%
Value difference (in dollars): $10,205
2. Fayetteville, NC
July 2011 Zillow Home Value Index: $113,978
ZHVI 5 years earlier: $102,373
Value difference (by percent): 11.3%
Value difference (in dollars): $11,605
1. Jacksonville, NC
July 2011 Zillow Home Value Index: $148,099
ZHVI 5 years ago: $126,655
Value difference (by percent): 16.9%
Value difference (in dollars): $21,444
Online real estate valuation and search company Zillow has calculated the U.S. metro areas that have experienced the largest gains in home values over the past five years, based on the company's home-value estimates and its Zillow Home Value Index, which is generated from those value estimates.
The five-year gains in estimated value range from 0.6 percent to 16.9 percent, while the estimated gains in dollar value range from $667 to $21,444.
The statistical models underlying the Zestimates control for the mix of housing for sale by finding patterns in the types of homes that are selling and then applying these patterns to all homes. If only a few homes of a certain type sell in a given period, the models can extract the information from those sales and apply that information to all homes of that type.
Here are the top five hottest markets:
5. Yakima, WA
 |
| Photo: Atomic Taco | Flickr |
ZHVI 5 years ago: $127,746
Value difference (by percent): 3.5%
Value difference (in dollars): $4,517
4. Tulsa, OK
 |
| Photo: Phan Ly | Flickr |
ZHVI 5 years ago: $101,802
Value difference (by percent): 9.4%
Value difference (in dollars): $9,596
3. Oklahoma City, OK
 |
| Photo: Nicholas | Flickr |
ZHVI 5 years ago: $101,532
Value difference (by percent): 10.1%
Value difference (in dollars): $10,205
2. Fayetteville, NC
 |
| Photo: Fang Guo | Flickr |
ZHVI 5 years earlier: $102,373
Value difference (by percent): 11.3%
Value difference (in dollars): $11,605
1. Jacksonville, NC
 |
| Photo: Doug Kerr | Flickr |
ZHVI 5 years ago: $126,655
Value difference (by percent): 16.9%
Value difference (in dollars): $21,444
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