Although real estate prices fell in the second quarter of 2010, the latest property index shows large variations across the nation.

Despite the continuing declines in house prices, the rate of decline is actually decreasing. The Zillow home Value Index fell by 3.2 percent on last year and by 0.6 percent from the first quarter of 2010. The index's second quarter of 2010 report showed that the decline has slowed for the second consecutive quarter.

Despite overall declines across the country, some markets saw strong rises. The Zillow Home Value Index saw year on year rises in San Diego, San Francisco, San Jose and Los Angeles of 7.3 percent, 5.9 percent, 5.6 percent and 5.5 percent respectively.

Stan Humphries, Zillow chief economist said "As the national housing market limps toward stabilization, individual markets are a mixed bag". He continued "The double tax credits for some California homebuyers have certainly stimulated housing demand there and are partly responsible for the rapid, and likely unsustainable, rates of appreciation in many markets across the state"

Humphries went on to add "Recent trends in home values suggest the nation could reach a bottom in the latter half of 2010, but we continue to be cautious about the impact of declining home sales".