U.S. property values increased again in February, according to the latest FNC Residential Price Index.

The February index reported a 28-month high after continuing to rise for 12 months straight. For the 12 months through February, the index jumped 6.1%, representing its quickest acceleration since July 2006.

According to FNC, investor activity continued to be driven by record-low interest rates and pent-up demand. Despite prices appreciating, the inventory remains limited as foreclosure activities decline.

The supply from potential trade-up buyers remains constrained by current prices, FNC notes, which are still too low to allow many existing homeowners to capture equity appreciation. 

February’s sales-to-list price ratio reached 95.0, up from 93.8 in January and 90.3 one-year prior. Conversely, foreclosure sales dropped to 20.2% from 26.5% a year ago.

Phoenix and Las Vegas continued to lead with the strongest price momentum, according to FNC. Phoenix’s home prices spiked nearly 30% in the last 12 months, with an average higher than 2.2% per month.