The latest report from CoreLogic revealed home prices nationwide surged by 10.2 percent in February as compared to a year earlier. That’s the biggest increase since March 2006 on a year-over-year basis, according to the Associated Press.
Largely the same factors that have been in play for the majority of the housing recovery remained so in February: namely, increased demand from investors, who helped push home sales to a three-year high in February; and a limited supply that reached a 13-year low in February. Home prices have now increased for 12 consecutive months.
Los Angeles was among the five cities that saw the biggest price increases in February, according to an Associated Press analysis. joining Phoenix, Riverside, Atlanta and New York. With that said, the price gains were broad-based as 47 of 50 states saw increases and all but four of the 100 largest metro areas also recorded gains.
Nevada saw the biggest gain as prices rose 19.3 percent. Arizona was next (18.6 percent) followed by California (15.3 percent), Hawaii (14.6 percent) and Idaho (13.5 percent).
As noted above, supply remains near near-record lows but there was a slight uptick in the housing supply in February as compared to the previous month. This is good news as it is regarded as a sign that more homeowners are feeling confident in the recovery and are becoming more willing to sell.