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According to a report published in today’s Wall Street Journal, housing prices continue to drop at an accelerating pace, while inventories pile up. According to the Journal, housing prices declined in all 28 major metropolitan areas throughout the country during the fourth quarter of 2010, compared with prices one year earlier. The size of the year-to-year decline was greater than the previous quarter’s in all but three of the markets.

Their survey found that buyers and sellers are facing off in a debate over value: “It’s like high noon at the O.K. Corral on every single transaction,” said one broker. Buyers contend that prices are continuing to decline and are submitting offers reflecting, what they feel to be, future values, while sellers are holding out for a higher price.

The study found that another major contributor to the downward price pressure is the tight credit conditions that currently exist. In order to qualify for loans, buyers today must have stellar credit, a large down payment and a small amount of additional debt. This eliminates many potential buyers from the pool of candidates.

In terms of inventory increases, Orange County ranked third highest with a 26.1% increase over the same period last year. Orange County’s average price dropped 2.6%, one of the smaller declines among the 28 metro areas.