US home prices soared in April at the fastest pace since 2005 as potential buyers bid up prices on a limited supply of available properties.
The S&P CoreLogic Case-Shiller 20-city home price index, released Tuesday, jumped nearly 15% in April from the previous year. That is up from a 13.4% annual gain in March.
Many Americans have sought more living space since the pandemic kicked in, seeking larger homes in suburbs rather than apartments or smaller homes in cities. The rising demand has caused an historic run-up in home prices, which has also been fueled by low mortgage rates. The price gains have been so dramatic that home sales have started to slow as more would-be buyers are priced out of the market.
All 20 cities that make up the index reported higher year-over-year price gains in April than the previous month. Five cities Charlotte, Cleveland, Dallas, Denver, and Seattle had the largest 12-month price increases on records dating back 30 years.