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Home values drop 6.2% from last year

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Home values across the United States fell 6.2% in the second quarter from a year earlier with a slight 0.4% gain from the first quarter, according to Zillow (Z). The average home values hit $171,600 during the three months ended June 30, but remain nearly 30% below the peak of June 2006, according to the online real estate services firm. Values dropped in 142 of the 154 metropolitan statistical areas covered by Zillow. About two-thirds of the MSAs experienced home value appreciation. At the same time, the rate of foreclosure resales fell from the peak in March when 21.4% of all sales were classified as foreclosures. In June, 19.7% of sales involved foreclosures. "While there are many positive signs in the second quarter, and it is clear the post-tax credit free-fall of home values is over, we're not out of the woods yet," said Zillow Chief Economist Stan Humphries. "It is very encouraging that two-thirds of markets in our report experienced home value appreciation, but we have to remember that this is coming on the heels of one of the worst quarters since the housing recession began." Fiserv (FISV) also released its home price report using data from the Federal Housing Finance Agency. The report concluded the double-dip decline in home prices that began in 2010 continued in the first quarter of this year, with prices dropping in 302 of the 384 markets surveyed. "The decrease, an average of 5.1% as compared to the first quarter of last year, was expected, as housing demand settled to a lower level following last summer's expiration of the homebuyer tax credit," Fiserv said. Write to: Kerri Panchuk.

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