The 10 hottest U.S. real estate markets in 2017

  • 7. Knoxville, Tennessee: 4.4 percent

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    Tennessee's third-largest city will benefit from home appreciation of 4.4 percent this year, Zillow forecasts. Known for its music and cultural scene, Knoxville also appeals to outdoor enthusiasts for its location close to the Smoky Mountains.

    Incomes are rising at about 1.1 percent per year, while the unemployment rate stands at 4.7 percent.