Houses in Affordable Metros
That Could Become Hot Spots

Across the U.S., there are signs of a cooling housing market. Yet, in pockets throughout the country, there is a contrasting trend -- areas sidestepped by the real-estate boom are experiencing increased buyer demand, says David Lereah, chief economist of the National Association of Realtors in a recent commentary.  Driving buyers to these comparatively lower-priced areas is affordability, he says. Here's a look at homes in three metropolitan markets that appear to be on the way up: Salt Lake City, Denver, and Albuquerque, N.M.

• Salt Lake City, Utah
• Albuquerque, N.M.
• Littleton, Colo.

PLACE/PRICE: Salt Lake City, Utah/$1.75 million

PROPERTY TAX*: $7,016

THE PROPERTY: The gated estate of David Elmore, co-owner of the Utah Grizzlies, a professional ice hockey team. The 5,760-square-foot house, which sits on nearly an acre with views of Mount Olympus, includes five bedrooms and seven baths, all on a single level.

DESCRIPTION: The home, which was built in 1942, was renovated by Mr. Elmore and his wife, Donna, in the late 1990s. Among the residence's features are hand-carved 19th-cenutry English doors, hand-rubbed tongue-and-groove walls made from fir, and several fireplaces, two of which are antique. Outside can be found a guest house/artist cottage, a swimming pool and a hot tub.

NOTABLE: The compound, which serves as a vacation property for the couple, is located 20 minutes away by car from area ski resorts. Downtown Salt Lake City is a 20-minute drive away, as is the international airport. Prices for local vacation homes have been rising about 1.5% a month since September, says listing agent Gale Frandsen of Prudential Utah Real Estate in Salt Lake City. "We are definitely in a progressive market now," he says. Proximity to the ski resorts factors prominently into a residential property's price, he says. A buyer looking to purchase an area vacation home in a gated community should expect to pay at least $900,000, he says, with the most expensive vacation home on the market at press time listing for more than $17 million.

Sources: Prudential Utah Real Estate, Val Hart Real Estate,  Help-U-Sell Mountain Homes

-- Ms. Kim is a senior editor at RealEstateJournal.com.

Email your comments to lauren.kim@dowjones.com.