In its quarterly report on home values, real estate website Zillow.compainted a bleak picture for the U.S. housing market, with negative equity hitting a new high and with home values showing signs of a double dip.
Using the Zillow Home Value Index (ZHVI) as a barometer, the company reported that home values fell faster in the first quarter of 2011 than in any quarter since 2008, falling 3 percent from the previous quarter and 8.2 percent year over year. In addition, foreclosures were on the rise in the quarter due to banks lifting moratoriums on foreclosures. As a result, Zillow expects home values to bottom in 2012, at the earliest.
Although the national trend in home values is evident, local housing markets tend to vary dramatically, with several already showing a double dip in home prices. To get an idea of which local markets are seeing the biggest double dips, Zillow analyzed data for CNBC.com i n 158 metro areas to identify the cities where home values have seen the biggest recent run-ups before falling below their previous bottoms.
Cities are ranked here based upon the magnitude of the metro area’s run-up in home prices, with each experiencing at least seven months of consecutive home price declines.
So, which U.S. metro areas have seen the biggest double-dip in home prices? Click ahead for the list.
By Paul Toscano
Posted 16 May 2011