Home prices up 6.3% in October from last year

Home prices rose 6.3% in October from a year earlier, marking the biggest increase since June 2006, CoreLogic reports.

The gain is the eighth consecutive year-over-year jump in home prices nationally, the company says.

Prices dipped 0.2% from September. But such decreases are expected as the home buying market enters the off-season, CoreLogic says.

The housing recovery "continues to gain momentum," says Mark Fleming, CoreLogic chief economist. The recovery is "broad-based" with almost all markets experiencing some appreciation, he says.

The biggest gainers were states that were hit hardest during the downturn or those with strong energy sectors.

Arizona saw prices increase 21% year-over-year; Hawaii, 13%; Idaho and Nevada, 12%; and North Dakota, 10%.

Five states continued to see prices fall.

Illinois and Delaware posted declines of 2.7% in October from a year ago, the data show. Rhode Island and New Jersey were down 0.6% and Alabama was off 0.3%, CoreLogic says.

Other research firms have also reported strengthening prices. September prices were up 3% year-over-year in 20 leading cities, Standard & Poor's Case-Shiller index reported last week.

Fewer homes for sale are helping prices. In October, the supply of homes for sale was down 22% from year earlier levels, the National Association of Realtors says. In October, the nation had just a 5.4-month supply of existing homes for sale.

Realtors generally consider a six-month supply to be a balanced market, favoring neither buyers nor sellers. In some parts of the country, especially in parts of California and Arizona, for-sale inventories are much tighter. That's spurring price increases.

Buyer demand is also improving, helped with low interest rates. The average 30-year, fixed rate stood at 3.32% for the week ended Nov. 29, Freddie Mac says.