Home prices post record decline in Q4 from 2007

NEW YORK -- A widely watched index shows home prices tumbled by the sharpest annual rate on record in the fourth quarter and in December.

The Standard & Poor's/Case-Shiller U.S. National Home Price Index was down 18.2% in the fourth quarter from a year ago, largest drop in its 21-year history. Prices are now at levels last seen in third quarter 2003.

In December, the Case-Shiller 20-city index was down 18.5% from December 2007, while the 10-city index dropped 19.2%.

Prices in the 20-city index have plummeted 27% from their peak in the summer 2006, and the 10-city index has fallen more than 28%.