US house prices fall 18.6% in February

House prices in the largest US cities tumbled further in February but for the first time in 16 months the rate of decline eased from the prior month, offering a glimmer of hope that the stricken market could be beginning to bottom out.

The 18.6 per cent drop in house prices followed a 19 per cent year-on-year decline in January, a record, as prices fell steeply in a wide array of cities including Cleveland, Charlotte, New York and Washington, according to the closely watched Case-Shiller index, released on Tuesday.