U.S. home prices surged to record highs this spring, despite rising mortgage rates that have kept many potential buyers on the sidelines. According to the S&P CoreLogic Case-Shiller index, home prices rose 6.3% in March compared to a year earlier, marking the fastest annual increase since late 2022. This trend reflects limited inventory, which continues to drive competition and price gains in many housing markets across the country — particularly in areas like San Diego, Chicago, Detroit, and Miami, which saw the most significant growth.
Even though mortgage rates are hovering near 7%, the lack of available homes has helped sustain high prices and sparked concern over affordability. Economists note that housing demand remains strong, especially among millennials moving into their peak homebuying years, but affordability challenges may temper sales momentum in the coming months. Still, March’s data confirms that many markets are experiencing renewed price growth, further underscoring the challenges for first-time buyers.
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