New Orleans has been rebuilding since Hurricane Katrina devastated the area.
As people have returned, buyer demand has perked up -- and so have home prices.
But there's still plenty of room for this housing market to grow. The median home price in the metro area was only $163,000 during the three months ended September, more than 20% below the national median.
CoreLogic is predicting home prices will increase by 8.6% over the next 12 months, followed by a better-than-average 5.4% increase in the year after that.