NEW YORK, United States — HOME prices are dropping in America’s largest cities and are expected to fall through next year, as fewer people purchase homes and millions of foreclosures come on to the market.

The Standard & Poor’s/Case-Shiller 20-city home price index released yesterday fell 1.3 per cent in October from September.

All cities recorded monthly price declines. The last time that happened was in February 2009.

Atlanta recorded the largest decline. Prices there fell 2.9 per cent from a month earlier. Home prices in Washington dropped 0.2 per cent in October, the second monthly decline after five straight increases.

Home prices in Dallas, Portland (Oregon), Charlotte (North Carolina), Tampa (Florida) and Denver have fallen for four straight months.

The 20-city index has risen 4.4 per cent from their April 2009 bottom. But it remains 29.6 per cent below its July 2006 peak.

This year is on pace to finish as the worst for home sales in more than a decade. High unemployment and tight credit have kept people from buying homes, despite some of the lowest mortgage rates in decades.

Government tax credits gave the ailing industry a boost this spring. But they expired in April, and in recent months, home prices have begun to dip again.

Millions of foreclosures are forcing home prices down and more are expected in the coming year. Many people are holding off on making purchases because they fear the market hasn’t bottomed out, analysts say.