It was named by Zillow.com among 12 twelve U.S. cities showing extended declines in housing values, reversing signs of a sustained recovery last year.
The results of the Zillow study were published by Business Week.
It’s also been dubbed a double- dip city for purposes of the report
A city is considered double-dip when it has five consecutive price drops after at least five straight monthly increases where gains were preceded by a period where values fell in at least 10 of 12 months.
The double dip through January also was seen in Boulder and Greeley, Colorado; Providence, R.I.; Augusta, Ga.; Columbus, Ohio; Harrisburg and Lancaster, Pa.; Little Rock, Ark.; Green Bay, Wis. Greensboro, N. C.; and Lincoln, Neb. according to Zillow.
Ten other markets, including Boston and Denver, seem poised for a double dip, the company said.
The number of markets in a “double dip” jumped during January from five in December.
In its February report, Zillow said U.S. home values dropped 5 percent in the fourth quarter from a year earlier, marking three years of annual declines.
A Zillow spokesman said the increase in declines could be attributed to the likelihood interest rates will rise
The upward trend, in turn, would put downward pressure on home prices after the government boosted sales in 2009 with tax credits, increase federal housing agency lending and purchases of mortgage-backed securities by the Federal Reserve.
Home prices nationally dropped 0.6 percent in January from the prior month, the Federal Housing Finance Agency said yesterday. Government efforts to bolster the market spurred a 4.9 percent rise in home sales last year, the first annual gain since 2005, according to the National Association of Realtors.
If there’s any good news, it’s that Zillow expects home values to bottom out by June.