No. 5: San Jose-Sunnyvale-Santa Clara, Calif.

No. 5: San Jose-Sunnyvale-Santa Clara, Calif.

Q1 Home price index: 8.3 percent
Q1 Foreclosure rate (YOY change): 1.9 percent (up 39.8 percent)
Q1 90+ day delinquency rate (YOY change): 6.9 percent (up 53.1 percent)
April 2010 unemployment rate: 11.7 percent

Of the 50 largest metros, San Jose saw the largest increase in home prices, 8.3 percent year-on-year during the first quarter, according to CoreLogic data. This was driven by a decrease in inventory—supply of single-family homes in Santa Clara County dropped 19 percent year-on-year in May, according to a report by realtor CJ Brasiel. The main hurdle for recovery in the area will be the high unemployment rate, 11.7 percent in April, according to BLS data.