Stiff Competition, Fewer Homes Fuel Price Surge

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U.S. home prices soared 12.1 percent in April from a year earlier, the biggest gain since February 2006, as more buyers competed for fewer homes.

Real estate data provider CoreLogic said prices rose in April from the previous April in 48 states. Price also rose 3.2 percent in April from March, much better than the previous month-to-month gain of 1.9 percent.

Prices in Nevada jumped 24.6 percent from a year earlier, the most among the states. California's gain was next at 19.4 percent, followed by Arizona's 17.3 percent, Hawaii's 17 percent and Oregon's 15.5 percent.

More potential buyers have been seeking to purchase homes. But the number of homes for sale is 14 percent lower than it was a year ago. The supply shortage has contributed to the price increases.