Zillow.com, a Seattle-based company that tracks home values in 125 major markets across the nation, reported Monday night that home values fell 3.5% during the fourth quarter of 2007 from the previous quarter and 3% from the same quarter in 2006. Its home value indicator, called a Zindex and based on the median value of all homes within a metro area, was $224.890 as of year's end.

According to Zillow, 30.4% of all buyers of homes between year-end 2006 and 2007 now have negative equity. Areas in California, Florida, Nevada and Arizona, where the median down payments were zero to 5% during the last two years and year-over-year value drops in the fourth quarter were in the double digits, have negative equity rates two to three times the national median. Values in one such market, Las Vegas, dropped 13.8% year-over-year. Of those who bought homes in 2007, 57.6% now have negative equity, as do 72.5% of those who bought in 2006.

"With consecutive declines over the past five quarters, we haven't seen the housing market bottom yet, and it may very well get worse before things get better," said Dr. Stan Humphries, Zillow vice president of data and analytics. "Even many markets that have been largely insulated from recent declines, like some in the Pacific Northwest, reported notable value declines in the fourth quarter."

The biggest drop in value during the fourth quarter of 2007 came in single-family homes, which fell 4.4% from the third quarter to a median value of $230,908, which was 5.5% below fourth quarter, 2006. Condominium prices fell 4.4% quarter-to-quarter and 7.4% year-to-year.

Among individual markets, median values on a fourth quarter 2006 to fourth quarter 2007 fell 26.4% to $282,778 in Stockton, Calif.; 22.9% to $255,804 in Modesto, Calif.; 20.1% in Ft. Myers/Cape Coral, Fla. to $201.723; 17.5% to $320,905 in Riverside/San Bernardino; 12.9% to $261,237 in Miami/Ft. Lauderdale; 12.9% to $174,078 in Tampa/St. Petersburg/Clearwater; 12.1% to $225,419 in Phoenix/Mesa/Scottsdale; 10.6% to $532,116 in Los Angeles/Long Beach/Santa Ana; and 10.3% to $457,274 in San Diego/Carlsbad/San Marcos..

A full comparison of home values in the 125 Metropolitan Statistical Areas (MSAs), representing 43 million homes, can be found in Zillow's national Q4 2007 Home Value report.

Learn more about markets featured in this article: Los Angeles, CA, Phoenix, AZ.