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  • The hottest housing market in America is poised to see continued price gains, according to Capital Economics.
  • The firm said strong employment trends bode well for the housing market in the south.
  • "We think the southern markets will continue to outperform over the next few years," Capital Economics said.

America's hottest housing market will see more price gains over the course of the next few years, according to Capital Economics.

The research firm said in a note on Monday that America's southern housing market is poised to see continued strength thanks to two big trends: strong employment and relative affordability.