The latest price index from CoreLogic covered home prices through January.

Creative Commons 2.0: Jeff Belmonte, http://commons.wikimedia.org/wiki/File:Contando_Dinheiro_(8228640).jpg

Home prices in the Chicagoland area rose 4.9 percent year-over-year in January, according to the latest Home Price Index from CoreLogic.

Though that’s on the lower end of the metro areas that CoreLogic spotlighted – home prices in Dallas, for instance, were up 9.1 percent – such returns are consistent with other analyses, which have all found housing in Chicago to be growing at a steady, logical rate.

Additionally, CoreLogic found that home prices in all of Illinois were up 4.1 percent year-over-year in January; even with that increase, prices remain 22.5 percent below their boom-era peak.

Low Supply Drives Price Increases Nationwide

Nationwide, home prices were up 5.6 percent in January from the year before and 1.4 percent from December; that marks the 35th straight month of yearly price increases for the Home Price Index. CoreLogic’s forecasts anticipate prices will rise 0.4 percent from January to February and 5.3 percent for all of 2015.

Anand Nallathambi, the president and CEO of CoreLogic, said that low supply – brought on especially by rate lock-ins, which we’ve covered extensively – continues to drive price increases throughout the country.

“A dearth of supply in many parts of the country is a big factor driving up prices,” Nallathambi said. “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. Demand has picked up as low mortgage rates and the cut in the FHA annual insurance premium reduce monthly payments for prospective homebuyers.”

Since Jan. 2011, the Home Price Index has risen by 26.66 percent; see our graph below for a better idea on its rise: