For the ninth month in a row home prices continued to rise, according to RE/MAX National Housing report.

The median home price, at $158,900, increased 2.1% from the previous year. Closed transactions also increased 17.8% from last year and 5.4% from last month

As a result of rising home prices, there was a steady decline in inventory.

The number of homes for sale in October decreased 28.9% from a year prior and also fell 6.3% from the previous month. Month-to-month inventories have now fallen for the past 28 months in a row. 

Of the 52 metros surveyed this month, 48 areas, or 92%, saw higher sales then a year ago.

"As we enter the fourth quarter, 2012 is looking like the turn-around year for housing, with significant increases in sales and prices," said CEO Margaret Kelly of RE/MAX.

She added: "However, we recognize that this recovery is still fragile and dependent on more reasonable lending and regulation. If qualified buyers can obtain mortgages and more inventory comes to market, this recovery could become even stronger next spring."