Home prices across the U.S. are on the rise, making a huge 4.6 percent leap in August from August 2011. This is the biggest leap seen in six years.
According to CoreLogic, a real estate data provider in Irvine, the 4.6 percent increase is the largest seen since July 2006. The measurement also noted a 0.3 percent from July, a straight six month increase.
CoreLogic data shows that just six states did not experience the gains and only 20 of 100 well-known cities experiencing depreciations in home prices. During July, 26 well-known cities experienced depreciations.
CoreLogic said the increase is enhanced when the measurement of distressed sales are taken out – short sales and foreclosures – a measurement of 4.9 percent was seen with a one percent increase from July.
Anand Nallathambi, chief executive for CoreLogic, said the increase in prices speaks well for the residential housing market. He said for the U.S. to have a sustained economic recovery, there needs to be a healthy housing market. And, this cannot happen without both home price appreciation and price stabilization.
Arizona led the jump with an 18.2 percent increase followed by Hawaii, Idaho, Utah and Nevada. In Alabama, Connecticut, Illinois, New Jersey and Rhode Island, prices dropped.
Other recent reports show there is a steady increase trend, with the government saying the median price for new single-family homes hitting a five-year high. They also show gains in existing home sales, new housing starts and record low mortgage rates. However, pending sales for already existing homes dropped in August from its two-year high.
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