U.S. home prices witness 0.9 percent rise in January

Home prices in the United States increased January after a three-month lull, perhaps owing to a shortage of homes, according to report by CoreLogic, a consumer, financial and property information data provider.

The report reveals that home prices went up by 0.9 percent in January following a drop of 0.1 percent the previous month. Overall, there has been a rise of 12 percent in home prices during the last 12 months - the highest gain year-over-year in eight years.

However, the price figures do not take seasonal patterns like winter weather, which may slow down home sales, into account.

In a report released Feb. 21, the National Association of Realtors stated that home sales touched the nadir during the last 18 months.

While recent reports on housing indicate a slow market, Daily Finance reports that economists believe that the residential property market will gather momentum with the start of the spring buying season. However, they warn that the market will still be slower compared to the previous year.

During February, the number of signed contracts, which generally result in a finished sale in a couple of months, remained unimpressive.

According to CoreLogic, home prices remain 17 percent lower nationwide compared to the April 2006 housing bubble. While prices in Louisiana, Texas and Nebraska are set high, in 19 states the prices are within 10 percent of their peaks.

On the other hand, just five states - Michigan (13.7 percent), Nevada (22.2 percent), California (20.3 percent), Oregon (14.3 percent) and Georgia (13.4 percent) - witnessed major price gains in January in comparison to the corresponding period in 2013.