Home prices reached a new record in March amid an ongoing housing shortage, even as high mortgage rates pushed affordability out of reach for more Americans.
Prices increased 6.5% nationally in March when compared with the previous year, the S&P CoreLogic Case-Shiller index showed on Tuesday, the same as the previous month. It marks the fastest pace of growth since November 2022.
On a monthly basis, prices climbed 0.3%, according to the index.
Prices rose in all of the 20 major metro markets tracked by the index.
The largest price gain once again took place in San Diego, which recorded a year-over-year increase of 11.1%. It was followed by New York and Cleveland, with respective gains of 9.2% and 8.8%.
The Case-Shiller index reports with a two-month delay, meaning it may not capture the latest ongoings in the market.
There are a number of driving forces behind the affordability crisis. Years of underbuilding fueled a shortage of homes in the country, a problem that was later exacerbated by the rapid rise in mortgage rates and expensive construction materials.