U.S. home prices in 20 major cities declined 12.7% in February 2008 on a year-over-year basis -- a record -- according to the Standard & Poor's Case-Shiller Home Price Index (pdf), released Tuesday.

Meanwhile, the 10-city composite set yet another new record, as well, with an annual decline of 13.6%.

Las Vegas and Miami continue to hold the dubious distinction of being the weakest markets in the nation over the past 12 months, reporting double-digit annual declines of 22.8% and 21.7%, respectively, followed by Phoenix with a 20.8% decline.

Widespread price declines

For February 2008, markets in the West declined the most, with San Francisco, Las Vegas, and Los Angeles being the worst performers, with depreciation rates of more than 4% each. Charlotte is the only market with a positive return over the last 12 months, rising a scant 1.5%.

'Another horrible report'

Economist Peter Dawson told BloggingStocks Tuesday the report has almost no positive news. "It's another horrible report, except for only mild price declines in Seattle and the Northwest U.S. and Charlotte's increase. Home inventories continue to rise and prices are falling almost everywhere," Dawson said. "The February [2008] home price data shows no sign of a housing recovery."

Many economists expect home prices to continue to fall as home inventory levels grow through Q2 2008 and possibly into Q3 2008. That's because the slowing U.S economy will almost certainly reduce the number of eligible home buyers, and banks are likely to add to inventories by posting recently-foreclosed homes for sale.

Currently, the nation has about a 9.5- to 10-month supply of homes on the market, at current sales rates. A healthy housing market typically has a 3.5- to 4-month supply.