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Home values in the Fayetteville market increased for the third straight quarter, allowing the area to retain its No. 1 ranking in the nation for appreciation, according to Zillow.com.

A report Monday from the online real estate company said Fayetteville continues to deflect national housing trends, based on Zillow's formula for calculating home values.

The median home value in the market increased 10.8 percent to $123,200 in the third quarter, compared with the same period last year.

Fayetteville-area home values rose 1 percent between the second quarter and third quarter.

The city's best-performing ZIP code was 28306, where the third-quarter median home value of $142,800 was 20.6 percent higher than the same period in 2008. In Hope Mills, homes in 28348 appreciated 14.9 percent to a median value of $138,800.

"With Fort Bragg, there are always people moving in and buying homes," said Amy Bohutinsky, vice president of communications for Zillow. "Fayetteville continues to have more buyers than sellers."

With Fort Bragg-related growth, 40,000 new residents are expected to relocate to the area by 2013. Bohutinsky said the effects of BRAC likely will keep Fayetteville near the top of housing lists nationally for several years.

Areas with recession-resistant job markets, such as military bases, college towns and state capitals, tend to have a constant stream of new jobs that help them weather economic storms better than most places, Bohutinsky said.

Nationally, home values declined for the 11th consecutive quarter, falling 6.9 percent to $190,400, according to Zillow. But, Bohutinsky said, the rate of year-over-year decline shrank for the third quarter in a row, meaning home values in the July-to-September period did not decline as dramatically as in the first half of the year.

Jay Dowdy, president of the Fayetteville Regional Association of Realtors, said the military has a huge influence on home values.

"The driver is our economy," he said. "Nearly half of our homes sold this year have been with a VA loan."

Since Jan. 1, there have been 5,063 homes sold, of which 2,936 were military buyers, according to Dowdy's data.

Dowdy said with BRAC, the market has become a great place for resales and rentals as well.

"Everyone has started to look online before actually even coming here," he said.

Jacksonville, home to Camp Lejeune, also showed relatively strong appreciation, according to Zillow. The median home price there is $140,800, up 1.7 percent from the same period a year ago.