Home prices hit new post-bubble lows in February, according to a report out Tuesday.

The S&P/Case-Shiller home price index of 20 cities recorded a decline of 3.5% from 12 months earlier. Home prices have not been this low since November 2002.

“Nine [housing markets] hit post bubble lows,” said David Blitzer, spokesman for S&P. Those nine markets include Atlanta, Charlotte, Chicago, Las Vegas and New York.

The main challenge for housing continues to be foreclosures and other distressed property sales, according to Pat Newport, an analyst for IHS Global Insight.

“We still have 6 million homeowners who are late on their payments,” he said. “We’ll still have lots of foreclosures, which will depress prices.”

The good news is that some of the worst hit of the 20 cities in the index seem to be pulling out of their tailspins.

“Some [cities], which have declined considerably over the last five to six years now have begun to exhibit an uptick in home prices,” said Luis Vergara, a director with Mission Capital Advisors. Phoenix prices climbed a robust 3.3% year-over-year. Miami recorded a gain of 0.8% in the last 12 months. Even Las Vegas appears to be turning more positive, with home prices down only 8.5% year-over-year, compared with a drop of 9% in January.

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