Home prices continue to fall

The report also notes that while home prices fall, prices on other goods and services are rising. That means that, when accounting for the inflation seen elsewhere in the economy, home prices actually are down 10 percent over the last 12 months.

Prices were down in 31 states, with the Atlanta area being hit particularly hard. Prices in that region of Georgia are now down more than 14 percent in the last year.

In contrast, prices in Pittsburgh grew at the fastest rate, climbing by 3.7 percent over the same time frame.

The quarterly fall came despite the fact that home prices rose in the month of July by nearly a percentage point, FHFA said.