Watch for rising jobs, not rising prices
jobs report unemployment hiring

Most of us watched home prices to gauge the health of the housing market. That was so 2012, however. Just because prices are rising doesn't necessarily mean the industry is doing any better. Next year, a better pulse of the market will be the rate of jobs growth, says Jed Kolko, chief economist with Trulia.

Cities like Las Vegas, Miami and Phoenix have seen home prices surge, but it's uncertain how long that could last. Prices have risen, partly because they fell so much and also because many homes are still undergoing the foreclosure process. They're also cities in states with some of the highest rates of unemployment, which ties closely to how well people will be positioned to buy.

For 2013, Kolko has spotted 10 cities where he thinks the market will be healthiest. Congrats Texas, you make up the bulk of them!


  @FortuneMagazine - Last updated December 27 2012 05:39 AM ET
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