On the last Tuesday of each month, the S&P/Case-Shiller Home Prices Indices are released. Based on the most recent release of this information, average U.S. residential home prices have increased approximately 8.1 percent over the past 12 months.

Driven by a combination of persistently low mortgage borrowing rates, moderately improved unemployment rates and a reported scarcity of supply, the increased demand for the average residential home is pushing prices upward. Additionally, family formation rates are recovering from the downturn experienced during the recent recession.

Leading the price recovery over the past 12 months are areas such as Phoenix, San Francisco and Las Vegas. Case-Shiller reports these areas have seen price increases of 23 percent, 18 percent and 15 percent, respectively, over the past 12 months. Some of these locations are also areas that suffered some of the greatest price declines several years ago.

A material portion of the overall demand for existing residential housing units is being driven by institutional buyers. Some estimates indicate as much as 20 percent to 30 percent of residential home purchases over the past couple years have come from various types of institutional buyers.