The gains in home prices took a slight breather in March. Nationally, values rose 6.5 percent annually, unchanged compared to February, according to the S&P CoreLogic Case-Shiller home price indices. February’s reading was revised higher.
Larger cities, however, are seeing bigger gains. The nation’s 10 largest metropolitan markets saw home prices increase 6.5 percent annually, up from 6.4 percent in the previous month. The 20 largest cities posted a 6.8 percent annual increase, unchanged from the previous month.
“Looking across various national statistics on sales of new or existing homes, permits for new construction, and financing terms, two figures that stand out are rapidly rising home prices and low inventories of existing homes for sale,” said David Blitzer, Managing Director and Chairman of the Index Committee at S&P Dow Jones Indices. “Months-supply, which combines inventory levels and sales, is currently at 3.8 months, lower than the levels of the 1990s, before the housing boom and bust. Until inventories increase faster than sales, or the economy slows significantly, home prices are likely to continue rising.”
Seattle, Las Vegas and San Francisco continue to lead in price gains. Seattle home values rose 13 percent annually. Twelve of the top 20 cities saw greater annual price increases in March compared to February.