Best-Performing Cities of 2009

With the homebuyer tax credits and low mortgage rates stimulating demand for housing during 2009, and home values declining at a lower rate than they were last year, “stabilization” has been the buzzword of 2009.

But home values in some areas of the country are doing more than stabilizing. So we at Zillow.com set out to find the cities that are seeing the biggest year-over-year increases in home values. We looked at cities with populations of more than 20,000, and compared their October 2009 Zillow Home Value Index (which measures the median value of all homes in an area) with the October 2008 Index to see which cities had the most appreciation in home values. We then broke the results down on a national and regional level. Here is what we found:

Best of the NATION

The city of Charleston, WV (the state capital) takes the number one spot as the U.S. city with the biggest year-over-year appreciation in median home value (as measured by the Zillow Home Value Index). New Orleans, LA and Wilmington, DE take second and third spots, respectively.

Best of the WEST

Pasco, WA, located in the state’s budding wine region has topped the list of cities in the west with the highest year-over-year appreciation. The West list is dominated by cities in Colorado which have seen home value appreciation for the first time since mid-2007.

Best of the MIDWEST

Mequon, WI, a small city located on the western shore of Lake Michigan but within commuting distance to downtown Milwaukee tops the list of cities in the Midwest with the most year-over-year appreciation. It is the only representative of Wisconsin on a list primarily made up of cities in Ohio and Illinois.

Best of the NORTHEAST

Charleston, WV, which also tops the national list, ranks as the top city in the Northeast for year-over-year appreciation. Cities within New York State make up five of the remaining nine cities making this year’s list.

Best of the SOUTH

The Big Easy, New Orleans, LA, ranks number one in the South as the city with the highest year-over-year appreciation. Other major cities on the list include Louisville, KY (which tied for the seventh spot) and Little Rock, AR.