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Biggest home price increase projected in 2014: Norwich-New London metro

Forecast 4-year price increase: 13.3 percent
Current median price: $220,000
Prices to reach trough in: 2011 Q1
Median family income: $77,400
Population: 266,830

Home sales in New London County, in southeast Connecticut, were up 25 percent year-on-year in the second quarter as the median price held steady, according to a market report by Prudential Connecticut Realty. In addition to being the U.S. Navy’s primary submarine base, New London is also home to Connecticut College and the U.S. Coast Guard Academy. June foreclosures in eastern Connecticut were down compared with May, but a high unemployment rate (8.5 percent in June) will impede the turnaround, reported Fiserv and Moody’s expect the market to reach bottom early in 2011.

Index used to calculate historical home price changes: Case-Shiller