NEW YORK–U.S. home prices rose but did not appreciate as much as had been projected during March, according to the latest S&P/Case-Shiller U.S. National Home Price Index.
Nevertheless, housing price gains in March were sufficient to reach a 33-month high, climbing at the strongest rate in nearly three years.
A big factor in the home value increase continues to be a relatively low inventory of homes for sale.
The national home price index increased 5.8% in March, while the 20-city home price index rose 5.9% in March over one year earlier, the most since July 2014. Among the 20 cities surveyed for this report, Seattle, Portland and Dallas reported their highest year-over-year gains.
The smallest gain of 4.1% was in New York.
"People are staying in their homes longer rather than selling and trading up," said David Blitzer, managing director and chairman of the index committee at S&P Dow Jones Indices, in a statement. "If mortgage rates, currently near 4%, rise further, this could deter more people from selling and keep pressure on inventories and prices. While prices cannot rise indefinitely, there is no way to tell when rising prices and mortgage rates will force a slowdown in housing."