House prices have reversed their steep decline and it appears home prices are finally stabilizing at mid-2003 levels, according to the May Standard & Poor's/Case-Shiller 20-city house price index. 

The May HPI shows that prices have fallen 17.1% from a year ago, which is slower than the 18.1% annual decline in April.

 "The pace of descent in home price value appears to be slowing," said David Blitzer, chairman of S&P's index committee.

While the index has reached a "clear inflection point," he said, prices are still down 17% on a year over year basis and "so we likely do have a way to go before we see sustained home price appreciation."

Subscribe Now

Access to a full range of industry content, analysis and expert commentary.

30-Day Free Trial

No credit card required. Access coverage of the securitization marketplace, including breaking news updated throughout the day.