From the Tampa Tribune on Feb. 11, 2009.

TAMPA - Home prices in Pasco and Hernando counties have dropped nearly 40 percent since the peak of the housing boom, according to a report released Tuesday.

The counties are among the top 10 hardest-hit counties in the nation, said Denver-based Integrated Asset Services, which tracks home valuations for banks, investors and hedge funds.

Pasco and Hernando counties saw declines of 39.7 percent and 39.4 percent, respectively, the study says. Prices peaked in Pasco County in July 2006, while prices peaked in Hernando County one month earlier, according to the report. Pasco was the seventh-worst drop while Hernando was tied for eighth.

Hillsborough and Pinellas fared much better. Prices there peaked in November 2006 and have fallen 24.9 percent and 14.1 percent, respectively.

These findings are similar to reports by other groups, but show that some counties in the Bay area have been hit a lot harder than others.

This report comes on the heels of a report released last week by Zillow.com that showed the Tampa-St. Petersburg metro area lost $35.6 billion in home value in 2008. The median home price in 2008 was $145,778, a 19 percent drop from a year ago.

Nationwide, prices dropped 19 percent since the market's peak in December 2006, the Integrated Asset Services report showed.

"We're seeing house prices returning to pre-bubble levels and there are no signs of leveling off just yet," said Dave McCarthy, president and CEO of Integrated Asset Services.

The only other Florida counties in the top 10 were Charlotte and Lee counties, with drops of 42.2 and 44.6, respectively. All other counties were in California.

As much as it hurts sellers, economists say the falling prices are good because they lure bargain-hunters into the market.