Are Home Values Flattening?

Web home shopping site Zillow Inc. has put out its home values numbers for October today, and the report is not encouraging.

National home values fell for the second month in a row last month, according to the Zillow Home Value Index, to $162,800.

This is the first time  since October 2011 there have been consecutive declining months.

Home values nationwide rose 5.2 percent year-over-year, Zillow says, "a much slower pace than annual appreciation rates in the seven percent range experienced over the summer, further proof that the market has begun to cool off after months of unsustainable appreciation rates."

The report covers 388 metropolitan areas; half of them "experienced monthly home value depreciation in October from September," Zillow reports. It forecasts one of the biggest drops for the next 12 months to be in our area, with values declining a projected 0.7%. And, month to month, there was no change in New York metro area home values; in the top 10 areas, the changes ranged from a .7% decline in home value in Dallas-Fort Worth to 1.2% one-month gains in Miam-Ft. Lauderdale and Los Angeles.

You can see its report here. Among the 30 largest metro areas covered by Zillow, 10 exhibited monthly depreciation in October, and two more were flat. It confirms last night's Bloomberg News report that foreclosures are declining.

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