While a complete housing recovery from coast to coast will take many years to occur, some markets are showing signs of stabilization and full-fledged rehabilitation. Unemployment and a surplus of available real estate owned (REO) inventory have been cited as factors preventing housing recovering on a national level, however, on a case-to-case basis there are some cities boasting the economic health needed for a full rebound.

According to market statistics, generated courtesy of real estate asset valuation data and solution provider Clear Capital, home values declined in 70 percent of all major markets in the nation during 2010. These reported decreases happened at a slower and more controlled pace than the previous speed that followed the real estate bubble burst. The nation's average unemployment rate of 9.5 combined with a REO market saturation rate over 22 percent is considered to be the biggest culprits of the trend. Nationally, home values retracted by 4.1 percent (year-over-year price change) in 2010, however, the firm also pinpointed that for consumers who want to buy a home now, some areas provide a welcomed exception to the rule.

Washington DC Metro Region Home Values To Increase 6.5%

The housing market in Washington, DC has been considered to be rebounding since September of 2010. Statistics provided by Metropolitan Regional Information Systems (MRIS) and Delta Associates had helped earn the district the title of becoming the nation's first housing market on the mend. Since then, Clear Capital has noted that the metro DC area, including the cities of Arlington and Alexandria, Virginia, have regained value health marked by a 5.3 percent year-over-year price change in 2010 and is expected to increase to 6.5 percent year-over-year by years end.

According to the U.S. Bureau of Labor Statistics, the Washington DC metro region had a moderate unemployment rate of around 6.3 percent; substantially lower than 2010 average national unemployment rate of 9.5 percent. Experts believe the natural unemployment rate ranges between 4 percent and 6 percent, and DC metro residents certainly enjoyed the benefits associated with being close to a healthy economy.

Houston, TX Metro Region Home Values To Increase 3.6%

According to Clear Capital's Home Data Index Market Report, the metro region of Houston, Baytown, and Sugarland, Texas experienced a year-over-year market price increase of 3.3 percent in 2010. That number is predicted to grow to 3.6 percent by years' end. The most recent statistics from the U.S. Bureau of Labor has shown that while the region is experiencing a higher than average unemployment rate of 8.6 percent (November) that number still reflects thousands of more employed workers as compared with the national average.

On January 21, 2011, Bizjournals.com had stated that local unemployed numbers decreased to 8.3 percent. That was influenced by the 10,000 jobs gained locally in November (Texas Workforce Commission). Additionally, decreases in resale inventory were also marked in town. The Houston Association of Realtors reported that averages and median prices for homes sold in September, October and November increased to the highest ever recorded for those time periods. Combined, those factors are giving the Houston metro region the stability needed for gains in the local housing market.

Honolulu, HI Home Values To Increase 3.4%

For several years, Harris Poll has conducting national research in regards to the question "If you could live in any state in the country, except the state you live in now, what state would you choose to live in." Baby Boomers (aged 46 to 64) and Matures (aged 65 and over) favored Hawaii, hands down. The passion for pursuing the American Dream in the Aloha State is alive and well courtesy of supply and demand.

Additionally, the U.S. Bureau of Labor Statistics has reported that Honolulu's unemployment rate was 5.4 percent (November, 2010). Those combined factors help support the case made by Clear Capital's data. According to the agency, Honolulu had a 7.2 percent year-over-year price change in 2010. Overall home values are expected to grow by 3.4 percent in 2011.