During the first quarter according to data from Zillow, home values fell 3% in the first quarter from the previous quarter and 1.1% in March from the prior month. The primary reasons for this were the oversupply of inventory and the large amount of foreclosed properties. Fannie Mae and Freddie Mac during the first quarter sold more than 94,000 foreclosed homes during the first quarter. This represents a 23% increase over the previous quarter.
There had been appreciation of property values here in San Francisco, Los Angeles, and San Diego, but recently they have declined again resulting in a double dip.