It will be a year of not-as-bad numbers for home values.

Zillow’s home-value forecast released on Thursday predicts a drop of 3.7% this year, which only looks like an improvement when measured against the 4.7% drop in 2011. Some markets hammered by the housing bust, such as Phoenix, Los Angeles and Riverside, Calif., should bottom out for home values in 2012, according to Zillow, and might even see a slight increase in values.

But other markets, particularly Atlanta, Chicago, and Seattle, are projected to show significant further home-value declines on a year-over-year basis in December 2012. The forecast from the real-estate company covers the top 25 metro markets.

Zillow has compiled these interactive charts to show how the outlook breaks down by market. Of course, a forecast is just that, and unforeseen factors could change the housing market’s course.

Read more: http://blogs.wsj.com/developments/2012/02/09/forecast-drops-in-home-values-less-severe-in-12/

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