Housing prices continue to fall in December

That decline places home values at 4.1 percent below that same period in 2009, as the struggling housing market continues to drag on any economic recovery.

“Despite improvements in the overall economy, housing continues to drift lower and weaker,” said David M. Blitzer, chairman of the Index Committee at Standard & Poor’s. “We have seen more markets hit new lows in each of the past three months.”

The economy has been the subject of some relatively good news recently, as the stock market has grown and Federal Reserve officials find more evidence that economic recovery is under way. However, the housing market continues to be a weight on any comeback, with this latest data showing the struggles are not yet over.

The bleak news come days after the administration unveiled its broad plan for the nation’s housing finance system, which called for the eventual winding-down of Fannie Mae and Freddie Mac, which would instead be replaced primarily by the private market.

And what to do with the nation’s housing is expected to be a hot debate on Capitol Hill this Congress, as Republicans controlling the House have identified an overhaul there as one of their top priorities.

Of the 20 cities tracked by the index, just two — San Diego and Washington — have seen home prices increase since 2009. The nation’s capital stands alone as the biggest gainer, with home prices having increased 4.1 percent since 2009.

Meanwhile, some cities have completely erased any gains in home prices made in the last decade. The new numbers show Cleveland and Las Vegas now have average home prices that are lower than ones reported in January 2000. Previously, Detroit was the only metropolitan market to enjoy that “dubious distinction,” the report stated.

All told, 11 metropolitan areas posted new lows in December since prices peaked in 2006 and 2007.