Home prices are rising at record speeds, as a chart of the S&P Case-Shiller Home Price Index shows.
The national index rose 14.6% in April from the same month a year earlier, according to data released Tuesday. That’s the largest increase in the history of the measure, which goes back to 1987. The measure of home prices has been rising steadily since 2019 and only picked up speed during the pandemic.
From March to April, prices rose 2.0%, also a record. High demand for homes coupled with a very low number of them for sale has set home prices ablaze lately, causing buyers to resort to extreme tactics—even writing personalized letters to sellers—to win bidding wars. The latest figures show the fire is only getting hotter.
“April’s performance was truly extraordinary,” said Craig J. Lazzara, managing director and global head of Index Investment Strategy at S&P Dow Jones Indices, in a commentary. “The strength in the U.S. housing market is being driven in part by reaction to the COVID pandemic, as potential buyers move from urban apartments to suburban homes.”
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