U.S. home prices rose 10.9 percent in March, according to the Case-Shiller home prices indices. All 20 cities tracked by Case-Shiller saw price increases, with Boston prices rising 6.7 percent.

This marks three consecutive months where home prices in all 20 cities touched by the index posted annual gains. Twelve of the 20 metropolitan areas saw prices rise at double-digit annual growth. The national index and the 10- and 20-city composites posted their highest annual returns since 2006.

"Other housing market data reported in recent weeks confirm these strong trends: housing starts and permits, sales of new home and existing homes continue to trend higher. At the same time, the larger-than-usual share of multifamily housing, a large number of homes still in some stage of foreclosure and buying-to-rent by investors suggest that the housing recovery is not complete," David Blitzer, chairman of the index committee at S&P Dow Jones Indices, said in a statement.

Other economists questioned whether Case-Shiller’s numbers might give consumers an exaggerated sense of the extent of the housing recovery.

"Are home values really up more than 10 percent year-over-year? Well, yes, if you bought your home in a large coastal metro that had a big housing boom, and you bought a house that was half foreclosure and half non-foreclosure. Otherwise, home values really grew at roughly half this pace over the past year – not bad, and certainly confirmation that the housing market is experiencing a brisk recovery," Zillow Chief Economist Stan Humphries said in a statement. "Low mortgage rates and high negative equity are leading to very high demand and very low inventory, respectively, creating a kind of witch’s brew of extreme price spikes. The bottom line is that these appreciation rates will slow down."