The CoreLogic house price index, which includes distressed sales, also moved up 0.4% from November to December.
“December marked the 10th consecutive month of year-over-year home price improvements, and the strongest growth since the height of the last housing boom more than six years ago,” said CoreLogic’s chief economist Mark Fleming.
Excluding distressed sales, the CoreLogic HPI rose 0.9% in December and 7% for the full year.
Homes prices generally rise during the warm months and fall during the winter.
The Irvine, Calif., provider of real estate data and analytics expects home prices will fall 1% in January.
But CoreLogic president and chief executive Anand Nallathambi sees continuing recovery in house prices.
“We are heading into 2013 with home prices on the rebound,” the CEO said.
“The upward trend in home prices in 2012 was broad based with 46 of 50 states registering gains for the year. All signals point to a continued improvement in the fundamentals underpinning the U.S. housing market recovery.”