Despite rising interest rates on mortgages, home prices surged a record 20.6% year-over-year in March, up from 20% year-over-year in the previous month, according to the latest data from S&P CoreLogic's Case Shiller national home price index.
The 10-city composite jumped 19.5% year-over-year, compared to 18.7% in the previous month, and the 20-city composite soared 21.2% year-over-year, up from 20.3% in the previous month.
Before seasonal adjustment, the U.S. national index posted a 2.6% month-over-month increase in March, while the 10-City and 20-City Composites grew 2.8% and 3.1%, respectively. On a seasonally adjusted basis, the U.S. national index rose 2.1% month-over-month, while the 10-City and 20-City Composites posted gains of 2.2% and 2.4%, respectively.
Though every region showed impressive gains, prices were strongest in the South (29.8%) and Southeast (29.6%).
Among the 20 cities, Tampa saw the highest year-over-year price increase of 34.8% in March, followed by Phoenix with a 32.4% increase and Miami with a 32% increase.
Meanwhile, Minneapolis (12.4%), Washington (12.9%) and Chicago (13%) saw the smallest price gains, though all three cities saw double-digit increases.
March's figures marked the highest year-over-year price change in more than 35 years of data for the national and 20-city composite indexes.
"The strength of the Composite indices suggests very broad strength in the housing market, which we continue to observe," S&P DJI managing director Craig Lazarra said. "All 20 cities saw double-digit price increases for the 12 months ended in March, and price growth in 17 cities accelerated relative to February’s report. March’s price increase ranked in the top quintile of historical experience for every city, and in the top decile for 19 of them."
The latest data comes as the Federal Reserve has begun hiking interest rates in an effort to tame inflation.
In April, the consumer price index, a broad measure of the price for everyday goods, including gasoline, groceries and rents, rose 8.3% in April from a year ago. Prices jumped 0.3% in the one-month period from March.
"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," Lazarra added. "Although one can safely predict that price gains will begin to decelerate, the timing of the deceleration is a more difficult call."