The S&P/Case-Shiller Home Price Indices show the U.S. National Home Price Index up by a paltry 0.1% in the third quarter compared to Q2. The national index posted an annual decline of 3.9%, up from -5.8% in the second quarter. The report said this quarter’s results put home prices back to their first quarter of 2003 levels.

Using data through September 2011, the annual rate of change in 14 of the 20 MSAs and both Composites improved month-over-month. The 10- and 20-City Composites posted annual rates of decline of 3.3% and 3.6%, respectively.

“Home prices drifted lower in September and the third quarter,” says David M. Blitzer, Chairman of the Index Committee at S&P Indices. “Three cities posted new index lows in September 2011 - Atlanta, Las Vegas and Phoenix. Seventeen of the 20 cities and both Composites were down for the month…Over the last year home prices in most cities drifted lower. The plunging collapse of prices seen in 2007-2009 seems to be behind us. Any chance for a sustained recovery will probably need a stronger economy. The markets are fairly thin, and the relative lack of closed transactions might be exacerbating the downside. The relative good news is that 14 cities saw improvements in their annual rates of change, versus the six that weakened.”

Source: S&P/Case-Shiller Home Price Indices