Zillow. com has just released its forth quarter report that shows that Denver and its suburbs recorded the biggest dollar gain in home values of any metro area in the country in 2009.

According to the report, Denver home values rose by $7.87 billion in 2009. Denver homes lost $20 billion in 2008.

This could be met with some skepticism because, as many of you know, Zillow valuates homes using public records, which aren’t as precise as an appraisal; or sold prices. Still, I guess one could argue that it’s still relatively accurate by virtue of being equally wrong all over the country.

Zillow said that in Denver, the variation between what they estimate a home is worth and what it actually sells for averages 11.2 percent in metro Denver.

They went on to list certain neighborhoods in Denver that they say may be in for a “double dip” in values. Before anyone sees their neighborhood listed and wigs out, rest assured our affiliate Realtors are telling us the exact opposite. Most of those neighborhoods are doing just fine.

On the other hand, a couple of the neighborhoods they listed as having the highest price increases had those increases as a direct result of foreclosure sales. And those areas are still in trouble. It just goes to show you the value of getting reliable, local information.

In a related story, a report from Metrolist, also released this Tuesday, said the median price for Denver homes sold fell 5 percent in January from December. Hang on boys and girls, it’s not over yet.