WASHINGTON — Supported by growing demand and low inventory, home prices continued to run ahead in April, with year-over-year growth hitting the fastest pace in more than seven years, according to data released Tuesday.

Including short sales and other distressed properties, home prices in April grew 3.2 percent during the month and were up 12.1 percent from the same period in the prior year, the highest rate since February 2006, according to CoreLogic, an Irvine, Calif.-based analysis firm.

“Increasing demand for new and existing homes, coupled with low inventory, has created a virtuous cycle for price gains, most clearly seen in the Western states with year-over-year gains of 20 percent or more,” said Mark Fleming, CoreLogic’s chief economist.

Excluding distressed sales, prices were up 11.9 percent from the same period in the prior year.

Annual price growth was widespread. Each state saw a year-over-year price gain, excluding distressed sales, for a second consecutive month. When including distressed sales, only two states saw a year-over-year decline: Prices fell 1.6 percent in Alabama and 1.7 percent in Mississippi.

Despite gains, prices remain below a 2006 bubble peak. Including distressed properties, prices in April were down about 22 percent from peak.

Excluding distressed homes, prices were down about 16 percent from that peak.

The data also show wide differences in price growth between locations. For example, including distressed sales, 12 states had double-digit annual price growth.