Home values in the Hub defied a nationwide trend, increasing 3.4 percent year-over-year in the second quarter, a new report found.

In the Boston area, the average home value of properties listed on Zillow is $331,568, up 3.2 percent from the first quarter. In the Cape Code area, home values fell 2.8 percent year-over-year to $318,026.

However, home values nationwide continued to decline in the second quarter, with the Zillow Home Value Index falling 3.2 percent year-over-year and 0.6 percent from the first quarter to $182,500.

The national rate of decline decelerated from the first quarter, marking the second consecutive quarter of slowing declines, according to the second quarter Zillow Real Estate Market Reports.

Negative equity, which refers to the percentage of single-family homeowners nationwide with mortgages who are underwater, fell to 21.5 percent from 23.3 percent in the first quarter, and from 23 percent one year ago.

"As the national housing market limps toward stabilization, individual markets are a mixed bag," said Zillow Chief Economist Stan Humphries. "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. While there is some uncertainty about how home values will respond in those markets once all incentives are removed, it’s certain they can’t continue at their current rates of appreciation, but is unlikely they will re-test the low points reached in 2009.