Housing markets: Best recovery bet

Tacoma is a mini-Seattle, situated right next door to the Washington capital. It's an important port, a rail terminus and enjoys easy access to the mountains and Puget Sound. It does have a more blue-collar history than Seattle, with oil refining and paper manufacturing playing big roles its economy even today.

It also has the advantage of more developable land. "King County (Seattle) is built out," said Lennox Scott, CEO of John L. Scott Real Estate. "A lot of the new single-family-home development is going into the Tacoma area."

There's a price difference between the two markets with Seattle houses selling for about 50% more than Tacoma's. As recovery proceeds, that gap will shrink a little, and Tacoma homes will appreciate more rapidly.

"There will be a shortage of supply in the more affordable price ranges," said Scott, "and that will put pressure on prices."