5 / 5
Top 5 turnaround towns for 2013
1. Oakland, Calif.

And the No. 1 turnaround town is ... Oakland!

The third-largest city in the San Francisco Bay Area gets a lot of technology-industry demand, which has overflowed from super-pricey San Francisco. Once known as a violence-riddled city, Oakland was ranked in The New York Times as one of the top five places in the world to go in 2012.

Oakland led the nation in price increases in the second quarter: Median list prices jumped more than 41 percent, to $479,000, from $339,000 a year earlier, according to Realtor.com. The median time homes stayed on the market was just 15 days, the best in the nation. That number is half what it was a year earlier and significantly lower than the national average of 83 days. Inventory dropped more than 34 percent.

Local realtors report an average of 10 to 15 offers on reasonably priced homes and ones that routinely sell for 12 to 15 percent over asking price, the Oakland Local blog reported. In fact, one realtor was quoted as saying, "I haven't talked to anybody in over a year who's worried about their job or their husband's job or their partner's job."

The market is so hot, it begged the question in the headline: Is another bubble coming?

To see the rest of the top 10, visit CNBC.com.

What to Read Next

Top 5 turnaround towns for 2013

August 20, 2013

Signs of the housing-market recovery are everywhere, from galloping mortgage rates to rising home prices and all those "under contract" signs popping up around the neighborhood.

Nationwide, homes typically sold in 83 days in the second quarter, 14 percent faster than a year earlier, according to Realtor.com. At the same time, the median list price rose 5.4 percent, to $196,000, and the number of homes on the market dropped by more than 10 percent.

Even some states hit hardest by the recession, including Michigan, California and Nevada, are starting to see their housing markets rev back up.

Realtor.com is out with its list of the Top Turnaround Towns for 2013. Several metrics are used to develop the list, including inventory, median list price, days on the market, and weighted search and listing activity on Realtor.com.

Yahoo! Homes is publishing the top five here; to see the rest of the top 10, visit CNBC.com. | By Cindy Perman, CNBC.com

More from CNBC:

Homes of the highest-paid governors
Cheapest states to live 2013
America’s most expensive states