CNN/MONEY Magazine turned to Fiserv Lending solutions and Moody's economy.com for exclusive forecasts on 380 markets.
Money Magazine By Tara Kalwarski, MONEY Magazine May 17, 2006: 4:16 PM EDT

MONEY Magazine has released the home forecast for the next four quarters, and Panama City is at the top of the list.

Between June 2006 and June 2007, Fiserv Lending Solutions and Moody's Economy.com predict that the Panama City-Lynn Haven area will experience 21 percent growth (or 21 percent increase in property prices), making Panama City the fastest growing city in the U.S. This shift in real estate growth for Panama City is good news for real estate investors, but bad news for families and individuals looking to purchase homes in the next four quarters.

Top 10 Panama City is one of two other Florida cities that made the top 10, which represents a change from forecasts in past years. California always dominated the ranks, but only one California city even made this list.

The top 10 cities with the fastest forecasted growth for June 2006-07 are:

* 1. Panama City, Fla. – 21 percent
* 2. Wenatchee, Wash. – 16 percent
* 3. Mount Vernon, Wash. – 14 percent
* 4. El Centro, Calif. – 14 percent
* 5. Lakeland, Fla. – 14 percent
* 6. Olympia, Wash. – 13 percent
* 7. Ocala, Fla. – 13 percent
* 8. Yakima, Wash. – 13 percent
* 9. Spokane, Wash. – 12 percent
* 10. Flagstaff, Ariz. – 12 percent

Close Look at Panama City Forecast Panama City-Lynn Haven Population: 148,217

Market forecast (June 2006-2007): 21.2 percent

5-year historical change (2001–2005): 102.7 percent

5-year historical change, average annual: 15.2 percent Change last year: 26.5 percent

Median home value: $124,555

Median family income: $49,300

Median home value to median family income: 2.5