Home prices jumped for the second straight quarter but remained nearly 9 percent below last year’s level, a housing industry report released Tuesday.

Home prices increased 3.1 percent nationwide in the third quarter of 2009, according to the S&P/Case-Shiller Home Price Index, a gauge of housing market direction. That followed 3.1 percent increase in the previous quarter.

Prices were still down compared to third quarter last year’s level by 8.9 percent but a big improvement compared to the double-digit year over year price decreases in this year’s second and first quarter with 14.7 and 19 percent respectively.

"We have seen broad improvement in home prices for most of the past six months," says David Blitzer, Chairman of the Index Committee at Standard & Poor's.

The Case-Shiller 20-City Composite index posted its fifth monthly increase in a row in September, rising 0.3% from August levels.

Las Vegas remained to be the worst performing market where prices have fallen for 37 consecutive months. They're now 55.4 percent below their peak.

Prices in midwestern cities such as Minneapolis and Detroit rose 1.8 percent, the most of any of the 20-cities covered. Chicago prices climbed 1.2 percent; San Francisco rose 1.3 percent while both Los Angeles and Phoenix each gained 0.8 percent.