In last week’s housing appreciation blog, I listed 20 metro areas showing home price increases. To keep things balanced, I’m giving you a list of 20 cities feeling a little lukewarm when it comes to home appreciation. National home prices tumbled 8.9 percent in the fourth quarter of 2007, according to recent figures released by the Standard & Poor’s/Case-Shiller Home Price Index.

Of the top 20 markets tracked by the index, 17 of the metro areas reported annual price declines and the remaining three reporting flat or moderate growth rates. Also, 14 of the metro areas reported record lows and eight are in double-digit decline. The three metro areas in the 20-city index that had year-over-year price gains in December 2007 were Charlotte, up 2.3 percent; Portland, up 1.2 percent; and Seattle, up 0.5 percent. Here’s a look at the 17 other markets:

Top 17 Metropolitan Areas with Home Price Depreciation (Fourth quarter 2007)

Metro Area	Rank	4th Qtr.
Miami, FL	1	17.5%
Phoenix, AZ	2	15.3%
Las Vegas, NV	2	15.3%
San Diego, CA	3	15.0%
Los Angeles, CA	4	13.7%
Detroit, MI	5	13.6%
Tampa, FL	6	13.3%
San Francisco, CA	7	10.8%
Washington, D.C.	8	9.4%
Minneapolis, MN	9	8.0%
Cleveland, OH	10	6.3%
New York, NY	11	5.6%
Chicago, IL	12	4.5%
Denver, CO	12	4.5%
Atlanta, GA	13	3.4%
Boston, MA	13	3.4%
Dallas, TX	14	2.4%

Source: Standard & Poor’s/Case-Shiller

In states like Ohio and Michigan, the declining demand for homes due to job losses and today’s tighter credit restrictions has left those looking to sell their properties with fewer potential buyers.

In states like California, Florida, Nevada and Arizona, overbuilding of new homes created a surplus that will take some time to work through. California and Florida are the states hardest hit by foreclosures.

Falling prices and growing foreclosures have created a vicious cycle in the housing market. The more prices fall, the less likely borrowers will be able to use home equity to refinance into more affordable loans, which can lead to more defaults. And as the number of foreclosures continues to rise, housing inventory will likely increase, further depressing prices.

Got hot local housing tips or a story you want to share? Contact Amy Le at openingdoorsblog@homescape.com.