Metro Denver had the third-largest gain in home values among cities nationwide in 2009 through November, with a $10.7 billion increase, according to Zillow Real Estate Market Reports.

Only Boston ($23.3 billion) and Providence, R.I. ($12.4 billion) had greater gains in home value.

U.S. home values as a whole dropped $489 billion in this year’s first 11 months, which was significantly less than the $3.6 trillion drop in home value sustained in 2008, the Zillow report said.

Forty-eight of the 154 markets Zillow tracks showed gains in home values through last month.

The report was produced by Seattle-based Zillow Inc., a provider of housing information related to sales, values, foreclosures and mortgages.

Zillow uses its own proprietary formula to calculate home values.

Home values stabilized significantly during the second half of 2009, with total dollar value of U.S. homes increasing since June,” Stan Humphries, Zillow’s chief economist, said in a statement. “Most housing markets across the country had a good summer, spurred largely by the government’s tax credits for [first-time] homebuyers combined with very low mortgage rates.

Future home values will be affected by mortgage rates that are expected to “creep back up” in the first quarter of 2010, as well as a foreclosure rate that continues to be high. “Both these factors will challenge the recent stabilization of home prices,” Humphries said.

Denver-area home values increased $10.7 billion to a total of $215.7 billion this year through November, according to Zillow. Values dropped $20.2 billion in 2008.

Los Angeles had the biggest decrease in home value through November, with a $60.8 billion drop to $1.7 trillion in total home value.

Other markets seeing major losses in home value included:

• Chicago — Down $49.6 billion to $688.8 billion total.

• New York City — Down $49 billion to $2.7 trillion.

• Miami-Fort Lauderdale — Down $45.9 billion to $403.5 billion.

• Phoenix — Down $45.1 billion to $241.1 billion.

Home value dropped so much in those markets partly because of the high number of homes in those metro areas, the report said.

This article appeared in the Denver Business Journal on Dec. 8th, 2009