Home prices continue to increase across the U.S. in March, despite ever-increasing mortgage rates. In addition, Tampa recorded the highest year-over-year price increase, according to the S&P CoreLogic Case-Shiller U.S. National Home Price NSA Index, released May 31.
Overall, the index reported a 20.6% annual gain in March — the highest year-over-year price change in more than 35 years of data — up from 20% in the previous month, while the 10-City Composite annual was up 19.5%, from 18.7% in the previous month, according to a press release.
“Those of us who have been anticipating a deceleration in the growth rate of U.S. home prices will have to wait at least a month longer,” Craig J. Lazzara, Managing Director at S&P DJI, said in the release. “For both National and 20-City Composites, March’s reading was the highest year-over-year price change in more than 35 years of data, with the 10-City growth rate at the 99th percentile of its own history.”
Among the 20 cities in March Tampa, Phoenix and Miami reported the highest year-over-year gains. Tampa led the way with a 34.8% year-over-year price increase, followed by Phoenix with a 32.4% increase and Miami with a 32% increase, according to the index.
Lazzara said in the release that for the first time in nearly three years, the city with the most rapid growth in housing prices was not Phoenix.
Additional cities which saw strong year-over-year increases in March include Dallas, with a 30.7% increase; San Diego, with a 29.6% increase; Las Vegas, with a 28.5%; and Seattle, with a 27.7% increase, according to the data.
On the other hand, cities that saw the smallest year-over-year increases include Minneapolis (+12.4%), Washington (+12.9%) and Chicago (+13%) and New York (+13.7%), the data shows.
“Mortgages are becoming more expensive as the Federal Reserve has begun to ratchet up interest rates, suggesting that the macroeconomic environment may not support extraordinary home price growth for much longer,” Lazzara said in the release. “Although one can safely predict that price gains will begin to decelerate, the timing of the deceleration is a more difficult call.”
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