Many real estate experts have pointed to home prices as a sign that the recovery is sustainable, and they have continued to climb.
According to CoreLogic's Home Price Index report, prices were up 6.3 percent on a year-over-year basis in October. This was the largest increase since June 2006 and the eighth straight month of annual jumps. However, prices were down 0.2 percent from a month ago, which wasn't unexpected as the market enters a seasonal lull.
Additionally, the Pending HPI projects that prices will rise 7.1 percent compared to the previous year in November, and decline 0.3 percent on a month-over-month basis.
"We are seeing an ongoing strengthening of the residential housing market," said Anand Nallathambi, president and CEO of CoreLogic. "Reduced inventories and improving buyer demand are contributing to stability and growth in home prices which is essential to the long term health of the housing market and the broader economy."
One of the driving factors behind home price increases has been more buyer demand, which can be attributed to record low mortgage rates and a recovering economy.