House prices rose 6.8% in May 2010 from last year. A report from real estate data provider Clear Capital states that this is the largest yearly increase since July 2006.
Last year Clear Capital reported a 19.3% drop in May house prices from the previous year.
"We continue to see sustained price growth throughout much of the country with yearly price gains reflecting the housing recovery off of last year's lows," said Alex Villacorta, senior statistician at Clear Capital. "The expiration of the tax credit at the end of April has certainly contributed to the growth of prices we are observing and as more sales close before the June 30 deadline we expect that markets across the country will continue to see strengthening of prices."
The amount of REO properties on the market appears to be declining, too, according to Clear Capital. The national REO saturation rate dropped 27.8%, down from 41.7% last year.
"This dramatic shift in price trends reflects the unprecedented volatility over the last couple of years and the delicate state of local real estate markets around the country," Villacorta said.