U.S. home prices improved for the fourth straight month in August while year over year decline moderates, indicating that the housing markets may be on its way to recovery, a report issued Tuesday.

The prices for the Standard & Poor's/Case-Shiller home price index of 20 major cities rose 1.2 percent in August to a seasonally adjusted reading of 144.5 following a 1.6 percent increase in July.

Home prices were still down 11.3% versus August 2008 but the rate of declines have slowed down since February.

While home prices are still about 30 percent below from the peak in 2006, the rebound appears widespread. Home prices have improved month-over-month in 15 of 20 metropolitan areas in August with San Francisco, Minneapolis and San Diego leading the pack.

Prices in Las Vegas, Seattle and Charlotte, N.C., dropped to their lowest levels in August.

Prices in Las Vegas are 56 percent below its peak in April 2006.

Home prices rose 2.8% in San Francisco during August, while San Diego prices were up 2.5% and Los Angeles gained 1.8% in the month.

Minneapolis had the biggest increase, with home prices rising 3.2% from July to August.

But prices continued to slide in areas that have been hit hard by foreclosures. Prices dropped 0.5% in Cleveland and 0.3% in Las Vegas during August.