CoreLogic reported that home prices jumped 12.1 percent since last April, which was the biggest gain since February 2006. Forty-eight states and 94 large U.S. cities saw such an increase.

The small number of houses for sale versus the ample amount of buyers competing for these homes is causing prices to rise. According to leading source, CoreLogic, prices rose from last year to this year in a total of 48 states. Not only did prices rise on a yearly basis, they also rose on a monthly basis, increasing 3.2 percent from March to April, which was better than the previous month-to-month gain of 1.9 percent.

The National Association of Realtors said that sales of previously occupied homes spiked up to a three-and-a half-year high in April and predicted these sales will keep growing. Also, the amount of signed contracts to buy homes the same month has hit its highest level in three years, according to the NAR.

This high demand to buy homes has resulted in a limited supply of houses on the market, driving the need for construction. Applications for building permits rose this year to the highest level in nearly five years.