Standard & Poor's said Tuesday that home prices fell in January for the fifth consecutive month, reaching a new low for the housing bust.
Values fell 0.8% in January from the prior month based on the 20-city S&P Case-Shiller house price index. Prices are now at 2003 levels.
"Despite some positive economic signs, home prices continue to drop," said S&P index committee chairman David Blitzer.
Eight cities posted new index lows in January and only Miami, Phoenix and Washington registered increases for the month. Overall, prices are down 3.8% from a year ago.
IHS Global Insight economist Patrick Newport noted the Case-Shiller HPI has fallen 34% since the peak in 2006 and he expects more price declines.
"Our view is that foreclosures, excess supply, and weak demand will drive home prices down at least another 5%," Newport said.