A new state report shows Wisconsin residential property values dropping, but still in better shape than some neighboring states. The state Department of Revenue says residential values fell by 3.5 percent, or $12.9 billion, last year. That compares to a national average drop of 5.6 percent. And the neighboring states of Minnesota, Michigan and Illinois have seen declines of more than 7 percent. The report also shows a drop in commercial property values last year. Those property values fell by 2.4 percent for a total decrease of $2.2 billion. But construction activity continues in the state. Wisconsin added $4.6 billion in new construction in 2009, including $2.5 billion dollars in residential property and $1.7 billion dollars in commercial property.