House prices fell 1.1% in February following a 1.1% decline in January, according to the Standard & Poor's/Case-Shiller 20-city house price index.

"There is very little, if any, good news in this housing report," said David Blitzer, chairman of S&P's index committee.

Overall, the HPI is down 3.3% from a year ago. Out of the 20 cities, only Washington D.C. posted an annual increase in house prices, up 2.6%.

Tuesday's S&P Case-Shiller report shows that prices are down 32.6% from the peak in July 2006 and could go lower.

"The 20-City Composite is within a hair’s breadth of a double dip," Blitzer said.

He pointed out that 14 metropolitan areas have declined month over month for more than six consecutive months as of February.

IHS Global Insight economist Patrick Newport expects the vicious cycle of falling prices leading to more foreclosures will continue.

"Going forward, weak demand, foreclosures, and a glut of homes for sale should translate into at least another 5% drop in the Case-Shiller composite indices," Newport said.

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