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In this Tuesday, April 2, 2013, phogto, Sam and Liz Weidner, of Hudsonville, Mich., view a home for sale in Cascade Township, Mich. A survey shows U.S. home prices rose 10.5 percent in March compared with a year ago, the biggest gain since March 2006. Core Logic, a real estate data provider, said annual home prices have now increased for 13 straight months. Prices are rising in part because more buyers are bidding on a limited supply of homes for sale.. (AP Photo/Paul Sancya)

WASHINGTON (AP) - A survey shows U.S. home prices rose 10.5 percent in March compared with a year ago, the biggest gain since March 2006.

Core Logic, a real estate data provider, said Tuesday that annual home prices have now increased for 13 straight months. Prices are rising in part because more buyers are bidding on a limited supply of homes for sale.

Prices increased in 46 states over the past year- 11 of them posting double-digit gains. And when excluding distressed sales, which include foreclosures and short sales, prices rose in every state. A short sale is when a home sells for less than what is owed on the mortgage.

Nevada led all states with a 22.2 percent annual gain. It was followed by California (17.2 percent), Arizona (16.8 percent), Idaho (14.5 percent) and Oregon (14.3 percent).

Home prices also rose 1.9 percent in March from February, signaling a solid start to the spring buying season. And 88 of the 100 largest cities reported price gains compared with a year earlier, down slightly from 92 in February.

Prices in Phoenix rose 18.8 percent in March from a year earlier, the largest gain of any city. Los Angeles, Riverside, Calif., Atlanta and Houston posted the next largest gains.

Steady job creation and record-low mortgage rates have boosted home sales and construction in the past year. More demand, along with a limited supply of homes for sale, has pushed prices higher.

The number of homes for sale fell nearly 17 percent in March compared with a year ago. That supply would be exhausted in about 4.7 months at the current sales pace. That's below the 6 months of supply that is typical in a healthy market.

Rising home prices can help sustain the housing rebound and lift the economy. More potential homebuyers may seek to purchase a house before prices rise further. And homeowners are more likely to put their houses on the market once they expect a good price.

Higher home values also boost Americans' overall net worth. That can encourage consumers to spend more, driving more economic growth. Consumer spending accounts for roughly 70 percent of economic activity.


(Copyright 2013 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)

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    logicul wrote...
    semi-recovery
    October 2, 2012 1:41 pm
    This doesn't surprise me, although most experts said it would be 10 years before it recovered. People have been moving here from all over during the Great Recession because the employment situation looks a lot better here than in most other states. I myself will be looking to make a home purchase next year, and I know several people who will be doing the same. I think a lot of other states around the country could use Arizona as a model for growth in both real estate and housing.
  • Abuse
    wrote...
    Recent
    January 29, 2013 12:43 pm
    sale in my neighborhood was a short sale that closed 55K above the listing price. No other houses available now in that neighborhood.
  • Abuse
    SurpriseMe wrote...
    not good
    April 30, 2013 10:09 am
    this is so bad. we dont not want home prices go up. a family making 50k can not buy a home if prices keep going up. They will become renters making the dream of owning a home impossible. if you currently own a home you dont care if value is greater unless you are selling. The key is to get in a home and stay for 50 yrs. my fathers home has been paid off for over 25 yrs meaning he only pays property tax and insurance and lives off of less than 20k per yr (utilities/car ins/meds/food/everything you need) the rest is money to play with.
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