Home prices in the Treasure Valley rose by 18.2 percent year-over-year in October, according to CoreLogic, a real estate information company. That included distressed sales, such as foreclosures and short sales. Prices rose 0.4 percent from September.

Idaho's annual home-price appreciation ranked among the highest the country, at 12.4 percent when distressed homes are included, CoreLogic said. Arizona and Hawaii had higher appreciations.

"We are seeing an ongoing strengthening of the residential housing market," said Anand Nallathambi, president and CEO of CoreLogic. "Reduced inventories and improving buyer demand are contributing to stability and growth in home prices, which is essential to the long-term health of the housing market and the broader economy."

Home prices nationwide, including distressed sales, rose year-over-year by 6.3 percent in October 2012 — the biggest increase since June 2006 and the eighth consecutive increase nationally on a year-over-year basis.

Home prices fell nationwide by 0.2 percent in October compared with September. Decreases in month-over-month home prices are expected as the housing market enters the offseason.