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Home Prices Rise by Most Since May 2006

A top housing research firm says home prices have rebounded sharply, posting their biggest increase in November since the spring of 2006 right before the housing bubble peaked in June and July, based on Case-Shiller data.

“Home prices nationwide, including distressed sales, increased on a year-over-year basis by 7.4 % in November 2012 compared to November 2011," CoreLogic says. "This change represents the biggest increase since May 2006 and the ninth consecutive increase in home prices nationally on a year-over-year basis.”

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Moreover, CoreLogic says “that all but six states are experiencing year-over-year price gains.” The last Case-Shiller index was for October.

CoreLogic’s index is off 26.8% from it peak, but is up nearly 10% from the post-bubble low set early last year. That this is the ninth straight month CoreLogic’s data has shown positive year-to-year comparisons likely means the housing crisis is now well on the road to recovery.

CoreLogic gets a lot of attention on Wall Street and in the hallways of Washington, and is used by the Federal Reserve.

The company’s chief economist says in a statement: “For the first time in almost six years, most U.S. markets experienced sustained increases in home prices in 2012. We still have a long way to go to return to 2005-2006 levels, but all signals currently point to a progressive stabilization of the housing market and the positive trend in home price appreciation to continue into 2013.”

CoreLogic says home prices, which include distressed sales, increased the most in Arizona (up 21%), Nevada (14%), Idaho (14%), North Dakota (11%), and California (11%).