The good folks at Case-Shiller have finished crunching the first quarter numbers, and what they found was a little sour and a little sweet.

The bad news — although not unexpected — is that home prices continue to drop, and are once again hitting new post-bubble lows.

The national composite was down 1.9% from the first quarter of 2011, and the narrower 10- and 20-City Composites showed prices dropping by 2.8% and 2.6%, respectively.

OK, so prices are down between two and three percent. What’s the good news?

First of all, this isn’t a surprise. We’re recovering, sure, but prices still have a bit to go before they’re back to normal. (In fact, it wouldn’t be surprising to see them drop several more percent before leveling off.)

But the better good news is that, as the press release headline explains, although prices continue to drop, they’re dropping at a slower rate than they have been. That could mean they’re going to be ‘landing’ soon, but if nothing else it means no more headlines like “Home prices plummet yet again.”

Click here to go forth and read “Pace of Decline in Home Prices Moderates as the First Quarter of 2012 Ends” (PDF)