U.S. home prices increased 12.1 percent in April from last year, marking the biggest gain since the February 2006 peak.
What's driving the price jump? Competition.
"Increasing demand for new and existing homes, coupled with low inventory, has created a virtuous cycle for price gains, most clearly seen in the Western states with year-over-year gains of 20 percent or more." Said Mark Fleming, chief economist for CoreLogic, which released it home price numbers Tuesday.
Prices rose in April from the previous year in 94 out of the 100 largest U.S. cities, up from 88 cities in March.
NATIONAL HOME PRICE STATS
Up 12.1 percent compared to April 2012 Up 2.3 percent from March 2013 22.4 percent below the April 2006 peak
MINNESOTA HOME PRICES
Up 6 percent compared to April 2012 Up 1.8 percent over March, 2013 23 percent below the April 2006 peak
In the Twin Cities, homes are being purchased at their fastest rate since 2007, but the inventory is still half of what it was two years ago. In May 2011 there were 25,636 active listings in the seven-county metro. In April of this year, there were 13,113 active listings.
"You hear people talking about (receiving) multiple offers (on a home)," Herb Tousley, director of real estate studies at the University of St. Thomas said. "Now, it's more of a seller's market."