Biggest Losers and Winners: Where Home Values Are Rising and Falling
Yesterday I reported U.S. home values declined further in the fourth quarter of 2010, posting their largest quarter-over-quarter decline since Q1 2009 according to Zillow.com's fourth quarter Real Estate Market Reports.
But it's really all about you - Is your state (or your block?) a biggest loser or a winner? And, what's happening when you look at the year as a whole, or what Zillow refers to as year-over-year (YOY) losers and winners.
The real question is why are prices going up in these communities? Are prices truly rising or is it a price fake-out?
In Ann Arbor, Michigan and other top college towns, home values have held up better than in many other locations. Ann Arbor is the seat of the University of Michigan. Demand has stayed strong for that University, so it makes sense to me that housing demand has stayed strong as well.
Part of the Atlanta-Sandy Springs-Gainesville statistical metropolitan area, Wikipedia says Gainesville is "often called the chicken capital of the world." Okay, but given that Georgia has one of the highest levels of foreclosures in the country, I'm at a loss to explain why home values gained 8.4 percent this year. (What do you think?)
On the other hand, it's no surprise to me that home values fell more than 20 percent in Pueblo, Colorado. Colorado is having a tough time with foreclosures.
But that's all anecdotal. Median home prices rise and fall based on whether more expensive homes are selling or more foreclosures (very low priced homes) are selling.
Home values overall will decline if you have twice as many foreclosures sell as regular priced homes. My sense is that this is what is driving the home value decline and appreciation.
Still, everyone loves a winner. So, we've got the biggest losers and biggest winners of the fourth quarter 2010 according to the numbers from Zillow.
Biggest Winners: Highest Year-Over-Year (YOY) Home Value Gain
Despite the tough economy and struggling housing market, these cities managed to increase their home values. Travel and population hotspots like New York, California and Hawaii predictably did well, but there are quite a few surprising cities on the list.1. Ann Arbor, MI
Current home value: $184,600YOY Gain: 11.3%
2. Gainesville, GA
YOY Gain: 8.4%
3. Honolulu, HI
Current home value: $490,100YOY Gain: 4.0%
Pictured
Small island, big demand from Asian buyers. Not a stretch.
4. Madera, CA
Current home value: $141,500YOY Gain: 3.8%
5. Merced, CA
Current home value: $110,400YOY Gain: 2.6%
6. Cape Cod, MA
YOY Gain: 1.9%
7. Cedar Rapids, IA
Current home value: $132,400YOY Gain: 1.0%
Pictured
8. Binghamton, NY
Current home value: $102,500YOY Gain: 1.0%
9. Utica, NY
Current home value: $98,600YOY Gain: 0.7%
10. Virginia Beach, VA
Current home value: $206,100YOY Gain: 0.6%
Biggest Losers: Highest Year Over Year Home Value Decline
Florida makes up 40 percent of the top ten list for home value decreases and was number three on the list of states hardest hit by foreclosures,It's no surprise that Detroit makes the list, but it's still a little alarming that the average current home value there is only $73,200. Michigan continues to suffer (it was number seven on the list of states hit hardest by foreclosure) and Lansing rounds out the top five of this list.
Here are the top ten cities with the highest year-over-year home value loss:
1. Pueblo, CO 
Current Home Value: $83,700YOY Loss: -23.7%
2. Mobile, AL
Current Home Value: $90,700YOY Loss: -18.5%
3. Ocala, FL
Current Home Value: $90,800YOY Loss: -18.2%
4. Detroit, MI
Current Home Value: $73,200YOY Loss: -17.4%
Pictured
5. Lansing, MI
Current Home Value: $96,200YOY Loss: -16.6%
6. Miami-Fort Lauderdale, FL 
Current Home Value: $139,100YOY Loss: -15.4%
Pictured
7. Atlanta, GA
Current Home Value: $128,100YOY Loss: -15.3%
8. Lakeland, FL
Current Home Value: $95,400YOY Loss: -14.8%
9. Flagstaff, AZ
Current Home Value: $231,600YOY Loss: -14.7%
10. Melbourne, FL
Current Home Value: $105,200YOY Loss: -14.5%
Does you city make either list? Were you surprised by any of the cities on the list?
To see how the home values are in the largest 25 metropolitan areas covered by Zillow read the full press release.
More on MoneyWatch:
- Home Values Decline Further in 4Q 2010
- Top 10 States For Foreclosures in 2010
- Foreclosure Lawsuit Upset: Court Rules Against Wells Fargo and US Bancorp
- FHA's Reverse Mortgage Standards Get Tougher in Response to Increased Delinquency
- Pending Home Sales Up in November, Realtors Provide Economic Forecast for 2011
- 10 Best Cities to Rent Rather Than Buy
- Million Dollar Dream Homes
- Home Improvement: Remodeling Projects with Biggest Payoff
- Most Expensive Apartment In The World?
- Most Expensive Housing Markets In America
- Top 5 Markets For Great Real Estate Deals
- Top Remodeling Trends for 2011
- Housing Prices Rebounding Here
- Tea Party: Don't Let Renters Vote
- Are You Getting Screwed by Your Lender?
- Foreclosure Process Shows Mortgage Lending Isn't The Only Problem
- What Does Main Street Know That Wall Street Doesn't?
- Real Estate Crisis Continues - Non-Residential Construction to Fall 20% by End of 2010
- Jobs, Small Businesses, Payrolls, and the Economy
- Loan Modification Hell: New Solutions To Avoid Losing Your Home
- Bank of America, Ally Bank Extend Foreclosure Freeze to All 50 States
Ilyce R. Glink is the author of several books, including 100 Questions Every First-Time Home Buyer Should Ask and Buy, Close, Move In!. She blogs about money and real estate at ThinkGlink.com and The Equifax Personal Finance Blog, and is Chief Content Strategist at RealtyJoin.com, a community for real estate investors.
