According to the data released, the US home prices index rose during the month of October due to an increase in sales and the limited supply of homes in the market.

A widely acceptable home price index rose 4.3 percent for October compared to the same month of the previous year. The rise in prices indicates that that the US housing market is recovering even as the market moves to a usually slow winter season.

The Standard & Poor's/Case-Shiller national home price index, which was released on Wednesday, increased 4.3 percent in October this year compared to the same month of 2011. The increase is the highest recorded in more than two years when the housing market entered a crisis.

The housing prices rose in 18 of 20 cities in the US during the month of October. Phoenix recorded the highest gain of 21.7 percent in prices ahead of Detroit with 10 per cent. On the other hand, the prices of homes fell in Chicago and New York during the month.

Meanwhile, the index also showed that the housing prices fell in 12 of 20 cities in October compared to September.