Detroit showed the biggest year-over-year increase, with prices rising 3.8 percent in the 12 months to November. The other gain was in Washington, where prices climbed 0.5 percent from November 2010.

'Trend Is Down'

"Despite continued low interest rates and better real GDP growth in the fourth quarter, home prices continue to fall," David Blitzer, chairman of the S&P index committee, said in a statement. "The trend is down and there are few, if any, signs in the numbers that a turning point is close at hand."

Historically low mortgage rates have failed to revive housing sales above their pre-recession peak. The average 30- year fixed rate mortgage was 3.98 percent as of Jan. 26, according to a Freddie Mac index. The index reached the lowest level in 40 years on Jan. 19, when rates fell to 3.88 percent.

A rebound in the inventory of unsold homes may hinder progress. Banks may seize more than 1 million U.S. homes this year after legal scrutiny of foreclosure practices slowed actions against delinquent property owners in 2011, RealtyTrac Inc., an Irvine, California-based data seller, said Jan. 12.

"Lending standards and demand for loans to purchase residential real estate were reportedly little changed" in the fourth quarter from the prior three-month period, the Fed said yesterday. The Fed surveyed loan officers at 56 domestic banks and 23 U.S. branches and agencies of foreign banks between Dec. 21 and Jan. 10.

Fed On Housing

Fed officials, at the conclusion of their Jan. 24-25 policy meeting, said the "housing sector remains depressed," a reason for their decision to keep interest rates low until 2014.

At the same time, falling joblessness and rising incomes have made Americans more optimistic, which may provide the demand needed to stabilize prices. In December, the unemployment rate fell to an almost three-year low of 8.5 percent, Labor Department figures showed Jan. 6. Personal incomes climbed 0.5 percent last month, the most since March, the Commerce Department said yesterday.

Builders have become more upbeat about the housing market. The National Association of Home Builders/Wells Fargo sentiment index rose this month to the highest level since June 2007 as sales and buyer traffic improved.

Economic Signs

"We turn our attention to the spring selling season with a renewed sense of optimism, not only because of our own improving trends but also because of the favorable signs we see in the economy, new and existing home level inventory, employment, affordability and consumer confidence as it impacts our business," Larry T. Nicholson, chief executive officer of Ryland Group Inc., said during a Jan. 27 conference call.