US home prices sharply dropped in February but for the first time since October 2007 the rate of decline slowed suggesting that the housing market might be seeing in the bottom.

The rate of decline with the S&P/Case Shiller 10-city and 20-city home price index did not hit a record decline. S&P said its index of 10 metropolitan areas declined 2.1 percent in February from January for an 18.8 percent year-over-year drop. The 10-city index dates back to 1988.

The index dropped 18.6 percent from February 2008, compared to the 19 percent year-over-year decline in January. The index was also down 2.2% from January. The index has not recorded a price increase since July 2006 and has fallen 30.7% since it peaked during that month.

The housing market is in its worst crisis since the Great Depression home prices fall as caused by the glut of unsold homes, stricter lending standards and record foreclosures push down prices. Of the 20 cities included in the index, 16 recorded a slower rate of decline in February than the month before.

The worst performing cities were Phoenix, Las Vegas, San Francisco Miami and Los Angeles. In Phoenix prices have fallen 35.2 percent over the past 12 months and 4.5% in January, it holds the number spot. Prices are down 51 percent or more than half of their value since peaking in July 2006.

Las Vegas is close behind Phoenix with a 31.7% year-over-year home price decline and was off 3.6 percent for the month. Prices there are off 48.4 percent from their peak.

San Francisco prices fell 31 percent over the past 12 months and 3.3 percent for the month. Miami prices was off 20.5 percent year-over-year and 3 percent month-over-month; and Los Angeles, 24.1 percent lower over the same period last year and down 2 percent on a monthly basis.

Dallas, Denver and Boston had the lowest annual rate of decline 4.5 percent, 5.7 percent and 7.2 percent, respectively.