[caption id="" align="alignright" width="317" caption="California homes for sale"][/caption]

Based upon the latest projections by Fiserv Case-Shiller the prices of homes across the nation are expected to decline by as much as 4 percent before the year is over. It is expected that out of the 384 major metropolitan areas looked at only 50 will not have home prices that will fall this year before they will start to improve

Despite the fact that these 50 will narrowly miss this decrease, the gains that most will have will be moderate at best, with only nine areas researched that will have homes with growth more than three percent. The biggest increase that the studied areas will see is 4.3 percent

At a closer look

If you examine the nine fastest growing markets in the U.S. you can see that there are particular factors that are helping to drive the growth and fighting against the standard trend. In most of the cases these are areas that have been marketed as the prime time for investment. The main contributing factors to this is that investors see the home values are at a very low point, they have relatively good economies in the area, or a combination of both

Another variable to consider is the fact that many of the areas where home prices may see an increase are places that have already experienced a decline. California is a big one. In as many as five of these nine areas the housing market has seen a 20 percent decrease since the height of the market. There are some places, such as the Madera-Chowchilla, California area that have seen staggering drops since 2006, with a decline of as much as 53 percent

Showing a cautious climb

In addition to having increases this year, the nine metro areas, with a few notable exceptions, will also have the largest home price increase in 2013 as well. According to economic experts at Fiserv Case-Shiller the recovery that the nation has been hoping for in the housing market will not likely have a full swing until the very end of this next year. Beyond the metro areas, rural communities in the nation are even farther behind this curve, and according to Arizona State Treasurer Doug Dewey the rural economy may still have a couple of years for recovery

Unemployment

One thing notable to point out is that many of the rural economies are still at very high unemployment rates. When you examine the correlation between these areas and the nine that were apart of the study you can see that, with minimal exception, they have had for the most part significantly lower unemployment numbers. In fact, many of these metro areas have rates that have been hovering somewhere in the area of 8%

Again when you examine areas such as Madera-Chowchilla, which has such a huge drop in housing prices, it would appear that it has bottomed out and is readjusting. This may have a lot to do with the potential 4.3 percent expected increase. There are a lot of factors to consider, and there are some surprising areas in the U.S.whose economy is flourishing and housing can’t seem to keep up with the influx. These places can be found in Montana, North Dakota, and even South Dakota. But places like California also seem to be on the rise to a better market.