America's best- and worst-performing housing markets

America's best- and worst-performing housing markets

 Since President Barack Obama took office in 2009, the government has run a lackluster mortgage relief program and offered Americans incentives to buy homes. Interest rates have fallen to historic lows. Yet by August 2011, the U.S. median home value was down to $172,600, or 9.9% below February 2009 levels, according to online real-estate information marketplace Zillow.com. Although most housing markets have struggled in the two and a half years that Obama has been president, home values have risen in a small number of cities — and they are not necessarily where you might expect.

No. 5 worst housing market: Altamonte Springs, Fla.

The fortunes of Altamonte Springs, like those of Orlando, have risen and fallen with the economic boom and bust. The median home value in the city is $86,300, according to the Zillow Home Value Index, and on Sept. 30 the median sale price was $66,900.

No. 4 worst housing market: Lehigh Acres, Fla.

Lehigh Acres is a "census-designated place" in the Fort Myers MSA. The area experienced a boom in new housing in the first years of the century, peaking at more than 7,500 new homes built in 2006, according to The New York Times. In 2009, sale prices of homes in Lehigh Acres were 80% off their peaks. Foreclosures have soared in the area, and unemployment in the county rose to 9.8%, from 3.5% in 2007. The median home value in the city is $63,700, as measured by the Zillow Home Value Index, and the median sale price as of Aug. 31 was $65,200.

No. 3 worst housing market: Trenton, N.J.

Like many former industrial cities, Trenton has seen its economic base dwindle dramatically since the end of World War II. Despite being the capital of New Jersey, the city fell on hard times as manufacturing jobs declined and many residents relocated to the suburbs. Crime has been a persistent problem. In 2005, it was cited as the fourth most-dangerous city in the U.S. with a population between 75,000 and 99,000. The median home value in the city is $60,700, according to the Zillow Home Value Index, and the median sale price at the end of July was $38,000.

No. 2 worst housing market: Pontiac, Mich.

Falling within the Detroit metropolitan area, Pontiac is a former manufacturing city whose the economic base eroded along with the decline of the U.S. auto industry. Once the home of General Motors' primary truck factory and the now-defunct Pontiac brand, the city entered into receivership in 2009. From 1970 to 2010, the city's population shrank 30%, to 59,575, according to the 2010 Census. The Zillow Home Value Index puts the city's median home value at $33,800, and the median sale price as of Aug. 31 was $24,000.

No. 1 worst housing market: Homestead, Fla.

At first glance, Homestead is a typical working-class Florida community that experienced a huge housing boom in recent years. Unfortunately, it is also typical in that many of those new houses are either unfinished, behind on their mortgages, in foreclosure or abandoned. Homestead is unlike other Florida communities, however, in that it has seen the biggest deterioration in home values in this already economically damaged state. Even worse, with a percentage drop of 48.8%, Homestead has seen the worst decline in home values in the U.S. The city was badly damaged by Hurricane Andrew in 1992 and never really recovered. Crime is also an issue: The crime rate remains above the state average. According to the Zillow Home Value Index, the median home value in the city is $76,000, and the median sale price was $96,400 as of Aug. 31.

No. 5 best housing market: Vienna, Va.

One of the gems of Fairfax County, Vienna is home to such attractions as the Meadowlark Botanical Gardens and the rolling greens of the private Westwood Country Club. According to the Zillow Home Value Index, the median home value in the city was $638,500 in August, and the median sale price was $645,400 as of Aug. 31.

No. 4 best housing market: Burke, Va.

A green area of parks, cul-de-sacs, and community centers with pools on the outskirts of the greater Washington, D.C., area, Burke is an affluent community within Fairfax County. The median home value in the city was $434,200 in August, according to the Zillow Home Value Index, and the median sale price as of Aug. 31 was $427,300.

No. 3 best housing market: Brookline, Mass.

The affluent suburb of Brookline shares a border with Boston but has a unique feel, with upscale stores and cute restaurants. The town is mostly residential, with historic houses that hark back to the Revolutionary War. It is also the site of the Country Club, the oldest country club in the U.S., which was founded in 1882. The median home value in the city was $506,900 in August, according to the Zillow Home Value Index, and the median sale price was $513,200 as of July 31.

No. 2 best housing market: Arlington, Mass.

Settled in 1635 as Menotomy Village, an Algonquin word for rapids or swift water, and later named Arlington, the area has a rich history that includes part of Paul Revere's famous ride. The town has a high median income, great schools and green parks. Home sales in this Boston suburb have increased for the past four years, according to Boston.com. The median home value in the city was $475,800 in August, according to the Zillow Home Value Index, and the median sale price was $468,200 as of July 31.

No. 1 best housing market: Weston, Fla.

The country's top-performing housing market since Obama took office: Weston, a luxury community near the Everglades in the Fort Lauderdale area. The city has been home to such pro athletes as former White Sox player José Canseco and the Florida Marlins' Hanley Ramirez, according to real-estate news site blockshopper.com. From April 2008 to April 2011, the population grew about 5%, estimates the University of Florida Bureau of Economics & Business Research. In 2006 Businessweek.com ranked Weston one of "The Best Affordable Suburbs" in the U.S. The median home value in the city was $280,000 in August, according to the Zillow Home Value Index, and as of Aug. 31, the median sale price was $335,000.