Look for these markets to stay hot

Denver, Seattle, and Dallas-Fort Worth top the list of Zillow's markets to watch in 2016; with Salt Lake City and Ogden, Utah, elbowing their way into this year’s top 10.

Topping the list is Denver, followed by Seattle and Dallas-Fort Worth, all of which are major tech towns and sitting pretty for job growth.

Zillow's Top 10 Housing Markets for 2016:

• Denver

• Seattle

• Dallas-Fort Worth, Texas

• Richmond, Virginia

• Boise, Idaho

• Ogden, Utah

• Salt Lake City

• Omaha, Nebraska

• Sacramento, California

• Portland, Oregon

To determine which markets would be hot, Zillow looked at home value appreciation, low unemployment rates and strong income growth. Omaha has the lowest unemployment rate of the 10 hottest markets, at just 2.9%. Denver saw home values rise 16% in 2015, and Zillow is forecasting them to rise another 5% in 2016, along with Portland.

A strong and diverse economy is the driving force behind Richmond's high income growth, with government, finance, education, and manufacturing jobs robust in the area and expected to continue in 2016. Boise, Ogden, Salt Lake City and Sacramento all have high forecasted home value appreciation; homes are expected to appreciate an average of about 5% over the next year.

"Trendy tech centers like San Francisco, Seattle and Denver hogged the spotlight in 2015. But this year, the markets that shine brightest will be those that manage to strike a good balance between strong income growth, low unemployment and solid home value appreciation," said Svenja Gudell, Zillow chief economist. "As the job market continues to hum and opportunity becomes more widespread, the best housing markets are no longer limited to the coasts or one-industry tech towns. This year's hottest markets have something for everyone, whether they're looking for somewhere to raise a family or start their career."

Three variables influenced Zillow's hot market predictions: Zillow’s Home Value Forecast, which forecasts the change in the Zillow Home Value Index over the next 12 months; recent income growth; and current unemployment rates. Those three variables were then scaled and combined to form a 'hotness score,' producing the top 10 list.