Home prices grew 2.6% over last year in August with the average home price hitting $205,000, according to the latest Home Price Index from Lender Processing Services.
Since the start of this year, prices have edged up 4.6%, suggesting 2012 was in fact the year of a modest housing turnaround. In August 2011, the average home price hovered at $199,000. By January 2011, the average price had fallen to $196,000, but regained traction in the months following.
LPS' index bases its home price report on sales transacted during the period rather than on deals recorded to offer a more accurate look at pricing levels. The survey makes its final conclusions after analyzing data from 15,500 U.S. zip codes and adjusting for price discounts on distressed assets.
Minnesota experienced the largest price gain with the average home sale value edging up 1.2% from July to August.
Rhode Island, on the other hand, was at the bottom of the list with its average sales price dropping 0.6% month-to-month.
Arizona is highlighted in the LPS report as a significant turnaround state, with prices rising 14.1% over year ago levels in August.
The Phoenix-Mesa-Scottsdale market saw prices jump 16.9% from year ago levels in August.