The 9 Largest and Smallest Declines in Home Values

By Lyneka Little

Sep 28, 2011 8:00am
 gty las vegas jef 110927 main The 9 Largest and Smallest Declines in Home Values

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Looking to buy a house after  Standard & Poor’s/Case-Shiller indices  recent report that home prices are up 0.9 percent from June to July?

The Modesto, Calif., metro area may be a good a place to snatch up property after home values in the area declined by more than 64 percent since hitting their peak in January 2006. On the other hand, if you’re looking a for a place to settle down, the Pittsburgh metro area may be one of the best places to call home.

The Pennsylvania metro area has seen values shrink by only 1.9 percent since peaking in July 2007. For California home buyers, it’s been a tough year. Merced metro and Stockton metro join Modesto as the three areas with the steepest declines  since hitting peak prices in December 2005 and March 2006, respectively.

“The top 3 markets that have fallen most in terms of value from peak are all in California, which was one of the hardest hit states in the U.S. in terms of the housing recession,”  said Svenja Gudell, a senior economist for Zillow.

Las Vegas is the only metro area outside of California among the top five on the list of areas that have fallen the farthest from their peak values.

“The top California cities had a slightly higher run-up to the collapse of the housing bubble in 2006 than Las Vegas, which leaves more room for home values to fall further from peak in those cities,” Gudell said. “While Las Vegas home values are no longer in a ‘free fall,’ Las Vegas Metro home values are still down 0.9 percent on a month over month basis and also down 9.6 percent on a year over year basis.”

Each metro area in the top 25 for steepest decline in values experienced a loss of more than 50 percent since reaching its peak in 2006 or 2005. What area is faring better? Rochester, N.Y. The median home value in the metro area went from  $122,400 in September 2009 to $120,300 in July 2011. The decline for the two-year period was the lowest of any metro area at 1.7 percent, according to data from Zillow.

For areas such as Rochester and Pittsburgh, that managed to retain much of their peak value, there was less of a housing bubble and housing prices were able to remain relatively stable, Gudell said.

Before you go on a buying spree, we asked Zillow, the online home and real estate marketplace, to create a list of metro areas that have fallen the most and since hitting their peak. The real estate company used current home value data from July to generate a list on the areas that have fallen the farthest and the least from their peak.

The 9 Metro Areas That Have Fallen the Most

1.  Merced Metro – 69.0%
Current Home Value: $159,600
Peak Home Value: $343,700
2.  Modesto Metro – 64.7%
Current Home Value: $184,300
Peak Home Value: $364,600
3.  Stockton Metro – 63.4%
Current Home Value: $207,100
Peak Home Value: $409,800
4.  Las Vegas Metro – 61.7%
Current Home Value: $196,200
Peak Home Value: $306,100
5.  Vallejo Metro – 59.7%
Current Home Value:$270,900
Peak Home Value: $472,800
6.   Salinas Metro – 58.9%
Current Home Value: $362,700
Peak Home Value:$686,500
7.   Fort Myers Metro – 58.1%
Current Home Value: $166,00
Peak Home Value: $304,600
8.   Reno Metro – 57.1%
Current Home Value: $240,900
Peak Home Value: $358,900
9.   Phoenix Metro – 56.4%
Current Home Value: $192,800
Peak Home Value: $282,200
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The 9 Metros That Have Fallen The Least
9.   Durham Metro – 6.1%
Current Home Value: $176,500
Peak Home Value: $180,00
8.   New Orleans Metro – 5.3%
Current Home Value: $149,900
Peak Home Value: $159,300
7.   Fort Collins Metro – 4.6%
Current Home Value: $212,700
Peak Home Value: $226,600
6.   Oklahoma City Metro – 3.9%
Current Home Value: $114,500
Peak Home Value: $116,200
5.   Tulsa Metro – 3.8%
Current Home Value: $110,800
Peak Home Value: $115,800
4.   Little Rock Metro – 3.4%
Current Home Value: $121,000
Peak Home Value: $126,700
3.   Fayetteville Metro – 2.8%
Current Home Value: $111,900
Peak Home Value: $117,300
2.   Pittsburgh Metro – 1.9%
Current Home Value: $110,400
Peak Home Value: $111,500
1.   Rochester Metro – 1.7%
Current Home Value: $120,100
Peak Home Value: $122,400
*Current home value is based on data from July 2011.
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