5.25.21
The S&P CoreLogic Case-Shiller National Home Price Index reported a 13.2% annual gain in home prices. The March gain is the largest since December 2005 and is one of the largest in the index’s 30-year history. Prices are climbing as demand, buoyed by low mortgage rates, remains strong and housing supply shrinks. At the end of March, the supply of existing homes was down 28% year over year. As buyers turn to the new home market, home builders have increased their construction pace. Nonetheless, economists say it could take years to shrink the nationwide shortage of houses, and therefore believe the supply-demand imbalance will only continue to drive prices up.