In Hamilton Co, OH in a regular ol' neighborhood my home value dropped 10% this year even after improvements. A couple of my neighbors' houses went down as much as 25% in assessed value. To be brutally honest, the assessed values are NOW what I consider to be fair. The county assessed value of my house in now exactly what I paid for it 18 months ago. Not the inflated price they had, or the super-inflated price the seller had originally. (That's one of the reasons the property was vacant for 18 months before I bought the place)

My house was IMHO overvalued before. When I see these "flip" shows with people buying a 1500 foot bungalow-style home for a quarter million and selling for $350,000 after cleaning the house, I am amazed how ANYONE can afford to buy a house when they are triple what any sane person should consider paying for that property! But that's another argument.