Home prices rose by 5.7% year over year in January 2015, driven by a lack of supply in some markets, the latest CoreLogic Home Price Index Report finds.

On a month-over-month basis, home prices increased by 1.1% in January compared to December 2014, data show. Excluding distressed sales, home prices were up 1.4% month over month in January.

However, home prices nationwide remain 12.7% below their April 2006 peak, data show. Excluding distressed sales, home prices were still 8.6% below their peak.

“House appreciation has generally been stronger in the western half of the nation and weakest in the mid-Atlantic and northeast states,” says Dr. Frank Nothaft, chief economist at CoreLogic, in a statement, noting that the trends in part reflect the strength of regional economies.

“Colorado and Texas have had stronger job creation and have seen 8 to 9% price gains over the past 12 months in our combined indexes,” he says. “In contrast, values were flat or down in Connecticut, Delaware and Maryland in our overall index, including distressed sales.”

Looking ahead, CoreLogic projects an increase of 0.4% month-over-month in February, and national home prices are expected to rise by 5.3% from January 2015 to January 2016 including distressed sales.

Excluding distressed sales, home prices are expected to rise 0.3% from January to February, and increase by 4.9% year over year from January 2015 to January 2016.

A lack of supply in many parts of the country is a big factor driving up prices, says Anand Nallathambi, president and CEO of CoreLogic.

“Many homeowners have taken advantage of low rates to refinance their homes, and until we see sustained increases in income levels and employment they could be hunkered down so supplies may remain tight,” he says. “Demand has picked up as low mortgage rates and the cut in the FHA annual insurance premium reduce monthly payments for prospective homebuyers.”

Access the latest CoreLogic report here.

Written by Cassandra Dowell