California is america's healthiest housing market

Photo: Bankforeclosuresale

The site's latest report shows that what was once the epicenter of the US property crash has become the country's strongest property hub, accounting for five of the top 10 healthiest metros.

Zillow's research ranks US property markets in terms of current health, comparing factors such as house prices to determine the most stable areas to live and invest. The top 10 range from Boston to New York, but is dominated by California. Indeed, the top four markets are San Jose, San Francisco, Los Angeles and San Diego. The top five is completed by Denver, Colorado.

"Rapid home value appreciation in the West, particularly California, is currently having a very positive effect on a number of other factors, including negative equity, foreclosure activity and the overall financial health of local homeowners," Zillow Chief Economist Dr. Stan Humphries tells TheMoveChannel.com.

While rising prices is good news for existing investors and for homeowners, though, he cautions that ther market's health is not guaranteed to stay that way: "That same rapid appreciation may cause affordability issues in the future in these markets, leading to potentially unhealthy conditions in the future."