Home prices in Los Angeles and Orange counties jumped 6.1% in May compared to a year earlier, according to a closely watched gauge released Tuesday.
Nationally, home prices rose 4.4%, a slight pickup from the 4.3% increase recorded in April, the Standard & Poor's/Case-Shiller index showed.
Economists say sustained job growth has given more Americans the confidence to purchase a house, leading to a strong spring selling season.
In June, sales of previously owned homes--the largest segment of the market--hit the highest level in more than eight years, according to the National Assn. of Realtors.
Still, not all segments of the housing market are as strong.