An analysis of second quarter home values in U.S. cities shows that declines are still happening, but the rate is slowing down. The Zillow Home Value index was down 12.1%, when compared to the second quarter of 2008, the 10th consecutive quarter that the measurement was down. But the first quarter numbers were down 12.7%, making this the first time since home values started to drop in fall 2007 that the quarterly decrease shrank.
While there are some encouraging signs nationally, Zillow says distress signals remain high, indicating that the housing market may not have hit bottom. Baton Rouge isn’t included in the 161 metro areas monitored by Zillow, but New Orleans had a 0.3% drop in home values, to an average of $148,700. The Crescent City posted slight gains from June to July (up 0.3%) and from the first quarter to the second (up 0.8%). Fayetteville, N.C., was the biggest gainer, with the index going up 13.4%, to $120,600, while Merced, Calif., was down 40.2%, to $106,500. See the full report here.
