This year home prices are on track to register their first yearly gains since 2006 and the strongest year since the housing market fell off a cliff. The rise is due in part to stronger demand, a fall in inventories, and continued low home loan rates.
Pushed up by rising sales and a decline in supply, home prices climbed more than forecast in the last quarter of the year, indicating a rebounding real estate market will bolster the U.S. economy for the first time in seven years.
While the California housing market continued to show strong sales growth since early 2012, the lack of inventory remained an issue throughout the year.
With an imbalance between supply and demand, home buyers have been fiercely competing…