By Vicki Needham - 08/05/14 12:58 PM EDT
Home prices rose 7.5 percent on an annual basis in June, the 28th consecutive month of year-over-year gains as the housing market continues its gradual recovery.
Meanwhile, June prices increased 1 percent from May, quelling some concerns about the affordability of real estate amid the strengthening economy, according to a CoreLogic report released Tuesday.
"This reversion to normality that we are finally experiencing is expected to continue across the country and should further alleviate concern over diminishing affordability and the risk of another asset bubble."
Still, despite the gradual gains, home prices nationwide remain 12.9 percent below their April 2006 peak.
"Home prices are continuing to rise fueled by ongoing tight supply, low rates and aggressive investor buying on the East and West coasts," said Anand Nallathambi, president and CEO of CoreLogic.
"The expected surge in the number of homes for sale has not materialized to date as many homeowners are staying put and waiting for better economic times and higher prices in the future."
CoreLogic’s forecast indicates that home prices are projected to increase 0.7 percent in July and by 5.7 percent on a yearly basis through July 2015.
At the state level only Arkansas posted a decline in June.
A total of 12 states — Alaska, Colorado, District of Columbia, Iowa, Louisiana, Nebraska, North Dakota, Oklahoma, South Dakota, Tennessee, Texas, Vermont and Wyoming — reached new highs in the index dating back to January 1976.
Other highlights of the June report include:
• Five states with the highest home price appreciation were: Michigan (+11.5 percent), California (+11.3 percent), Nevada (+11.1 percent), Hawaii (+10.8 percent) and Oregon (+9.5 percent).
• Excluding distressed sales, the five states with the highest home price appreciation were: Massachusetts (+11.2 percent), New York (+9.8 percent), Hawaii (+9.2 percent), California (+9.1 percent) and Oregon (+8.8 percent).