Home Prices Continue to Fuel Real Estate Euphoria

With the help of low mortgage rates and inventory levels, the euphoria in the real estate market continues to build higher. In January, home prices increased on a year-over-year basis for the eleventh consecutive month.

CoreLogic, a leading property information and analytics provider, reported its home price index gained 0.7 percent in January from the previous month. Compared to a year earlier, home prices across the nation jumped 9.7 percent, the biggest increase since April 2006. All but two states, Delaware and Illinois, posted year-over-year price gains.

Excluding distressed sales, home prices gained 9.0 percent on a year-over-year basis in January 2013. On a month-over-month basis, home prices excluding distressed sales increased 1.8 percent from December. The five states with the highest home price appreciation were: Nevada (17.5 percent), Arizona (16.5 percent), California (14.5 percent), Hawaii (13.9 percent), and Idaho (13.2 percent).