Home prices were on the rise again throughout the country in March on both an annual and month-to month basis.
The S&P CoreLogic Case-Shiller U.S. National Home Price NSA Index, which covers all nine census divisions in the U.S., reported a 5.8% annual gain -- setting a 33-month high.
Both the 10-City Composite and the 20-City Composite indices rose, posting gains of 5.2% and 5.9% annual increases, respectively.
“While there is some regional variation,” noted David M. Blitzer, Managing Director and Chairman of the Index Committee at S&P Dow Jones Indices, “prices are rising across the U.S. Half of the 20 cities tracked by the S&P Corelogic Case-Shiller indices rose more than 6% from March 2016 to March 2017. The smallest gain of 4.1%, in New York, was roughly double the rate of inflation.
March's highest year-over-year gains among the 20 cities came in Seattle (+12.3%), Portland (+9.2%) and Dallas (+8.6%).
Ten cities reported higher price increases in the year ending March 2017 than in the year ending February 2017.
Before seasonal adjustment, the National Index was up 0.8% in March. The 10-City Composite rose 0.9% and the 20-City Composite posted a gain of 1.0%. After seasonal adjustment, the National Index recorded a 0.3% month-over-month increase.
Both the 10-City Composite and the 20-City Composite indices rose 0.9% from February to March after seasonal adjustment. Eighteen of the 20 cities reported increases in March before seasonal adjustment; after seasonal adjustment, 17 cities saw prices rise.
“Over the last year, analysts suggested that one factor pushing prices higher was the unusually low inventory of homes for sale,” said Blitzer. “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.”