Boston and Worcester have something new to cheer about.

The two cities are on a list of 10 hard-hit housing markets that are ready for rebound that U.S. News & World Report recently compiled with help from Moody’s Economy.com.

According to the news magazine, Moody’s Economy.com predicts that Worcester home prices will increase about 6 percent by the first quarter of 2012 and 21 percent by the first quarter of 2014.

Moody’s also expects Boston home prices to rise about 3 percent in the first quarter of 2012 and another 18 percent two years later.

Why?

For one, Boston’s and Worcester’s economies are buoyed by their top-notch hospitals and colleges and universities. Those sectors will continue to help the economy.

But here’s another reason: the two cities didn’t have huge construction booms that left them with a glut of vacant property.

The cities have also worked hard to prevent foreclosures and also deal with the aftermath of foreclosures that did occur.

Leaders in Worcester have been pushing the Buy Worcester Now program designed to get bank-owned properties occupied again. The city is now trying to partner with banks and real estate agents to provide funding to buyers to buy and rehab vacant foreclosed homes.

Worcester home prices have plummeted since peaking in 2005. Median home prices reached $245,000 in 2005, according to The Warren Group.

Today, the median price for a Worcester home is down to $170,000 – a 31 percent drop!

Boston home prices have held up a little better during the slump.

The median price for a single-family home citywide reached $390,000 in 2005, according to The Warren Group.

The median price for homes sold in Boston during the first eight months of the year fell to $330,000 – 15 percent lower than the peak four years earlier.