The housing recovery in the Sunbelt, those southern-most states, is at levels ahead of the nation's average, despite housing prices in the region going in two separate directions. According to the third quarter 2011 economic outlook report by BBVA, housing prices in the Sunbelt are showing a dual evolution. Nondistressed properties prices are exhibiting stability, but distressed prices are declining with growing intensity. BBVA states that overall declines are between 2% and 12%. But, when digging further into the numbers, discounts for foreclosures can get as high as 30%. This drags down nondistressed prices when averaged. In the first five months of 2011, prices appreciated in some Sunbelt states, namely Texas, where prices increased 3% on average. The average discount for a distressed home in the Sunbelt is 20%, BBVA said. In California, Arizona and Florida, where supplies are high, foreclosures can make up nearly half of all distressed sales and discounts can be around 15%. In Alabama, New Mexico and Texas, the discount can be up to 30%. Write to Jacob Gaffney. Follow him on Twitter @jacobgaffney.