Home prices in most U.S. cities saw gains in the median price of single-family homes sold during the three months ended Sept. 30, according to the National Association of Realtors' quarterly report on home prices. This is the second consecutive quarter of gains.

The national median home price was $177,900, up $7,000 compared to the previous quarter but eleven percent below the figures of third quarter last year. The pace of decline is tapering off as home prices fell 15.4 percent from the same period last year.

"The decline in the national median price has moderated recently," Lawrence Yun, NAR chief economist, said in a statement.

The median sales prices of existing homes declined in 123 out of 153 metropolitan areas compared with the same period last year. Prices increased in the other 30 cities.

"The decline in the national median price has moderated recently, and a shrinking supply of unsold inventory suggests we are getting closer to price stabilization in many areas, " said Yun. "But we need a steady stream of financially qualified buyers to further reduce inventory and get us to a self-sustaining market."

Home prices in Fort Myers, Florida, the worst hit in the nation recording a 40 percent decline to $98,000 from a year ago while Las Vegas saw its median price plunging almost 35 percent to $138,500 year-over-year.

The largest price gain was in Cumberland, Maryland, where prices increased 19 percent to $122,100. This was followed by Davenport, Iowa, with a 14 percent increase to $115,600.

During that period, the most expensive market was San Jose, California, with a median price of $566,000.

The lowest-priced market in the nation is now Saginaw, Michigan, where the median home sold for $61,400 during the quarter, a 6.7% drop over last year.