Us house prices up for 12 months in a row

US house prices keep on climbing as the market's recovery gains momentum. Indeed, in October US median property values rise by 1.1 per cent (from September) for the twelfth month in a row - and the largest monthly increase since 2005.

The average price of a US home is now $155,400, according to Zillow's latest market report, leaving values 4.7 per cent above October last year - the largest year-over-year increase since September 2006.

Home values rose in the month in line with continuing recovery in the broader national economy, and reflect increased buyer demand driven by high affordability and tight inventory, added Zillow.

"We've reached a milestone with one full year of monthly home value gains," said Chief Economist Dr. Stan Humphries. "Skeptics will point to the large role that investors are playing in the recovery, or to the large number of foreclosures yet to hit the market, as factors to be wary of. But the bottom line is that homes are more affordable now than at any time in recent memory, and buyers are seizing this opportunity. We expect to see increasing numbers of potential buyers entering the market as the broader economy continues to recover and household formation picks up further."

A number of major markets were up substantially in October. Among those metro areas sporting double-digit, year-over-year gains in home values were Phoenix (22.3 percent), San Jose (11.4 percent) and Denver (10.4 percent). Only Chicago failed to register either month-over-month or year-over-year home value gains.

On the rental side, national rents were largely flat month-to-month, falling 0.1 percent to a Zillow Rent Index of $1,279. Year-over-year, rents nationwide were up 5.4 percent, and rose on an annual basis in all but three of the largest metros surveyed.