America's Hottest Housing Markets

Phoenix led the country in home value growth over the last year, shows data from Zillow, the real estate listing website. With 24% growth over the past year, the city's housing market is on its way back after bottoming out in the third quarter of 2011.

"Six of the 10 housing markets on the list are in California," notes Samuel Weigley, "which was hit harder by the housing downturn than most states. Three of the four metropolitan areas not in California — Detroit, Las Vegas and Phoenix — were also disproportionately hurt by the housing crisis. For example, in Las Vegas, home prices dropped 59% between the peak in the first quarter of 2006 and the third quarter of 2012."

"Home values do not necessarily rebound quickly after a major downturn, said Svenja Gudell, a senior economist with Zillow. However, many of the areas with the most growth in the past year, notably those around Silicon Valley, have remained desirable places to live. This has helped these areas recover at a faster clip compared to the rest of the country."