How much prices lag fundamentals: 21.6% Located roughly between Jacksonville and Miami, this Atlantic coastal community saw huge gains during the housing boom -- but equally sharp declines in the bust that followed. Palm Bay-area home values peaked in 2006 at 75% above what market fundamentals suggested, but have since fallen back to 21.6% below fair value today, according to Trulia. But even though the region's asking prices rebounded 4.4% over the past year, Kolko doesn't think Palm Bay is out of the glades just yet. He says much of the Sunshine State has big "shadow inventories" of distressed homes that lenders have yet to foreclose on and put up for sale. "There are still a lot of foreclosures to come in Florida," Kolko says.