Zillow Sees Further Home Value Declines Ahead

Seattle, WA, Feb. 10, 2012 -- Home values are likely to fall 3.7% this year, down from a 4.7% decline in 2011, according to a forecast released by real estate firm Zillow.

The firm said that some of the hardest hit areas, such as Phoenix, should see prices bottom out and maybe even rise a little.

However, other markets, such as Atlanta and Chicago, are projected to show significant declines on a year-over-year basis at the end of 2012.

While prices will drop, total home sales are expected to continue to pick up this year amid affordable prices and low mortgage rates, which may attract second-home buyers and investors.