Report: Home prices have fallen following tax credit

Even though the national economy appears to be turning around, a new report finds that home prices nationwide have maintained a steady slide since the federal homebuyer tax credit expired earlier this year.

According to the FNC Residential Price Index, prices in the 30 major cities included in the report fell by 0.9 percent from September to October, and are down 3.1 percent since May. The weakest market nationwide has been Orlando, Florida, where prices dropped 4.1 percent over the month.

The October report marked the fifth consecutive period of monthly price drops following the credit's expiration. In addition, prices in October fell below levels from February, setting a new cyclical low for nationwide prices.

The report added that the combination of foreclosures and the usual winter slowdown could lead to continued modest price drops in the coming months.

However the effect of those foreclosures may be far less pronounced in the Houston real estate market. According to CoreLogic, the city has just a 7.3-month supply of distressed properties, far less than levels of more than 30 months found in some other cities.