Home prices rose for the second consecutive month in March, driven by a shortage of homes for sale and increased competition among buyers.
The limited inventory of homes has caused a decline in home sales over the past year, leading to increased competition among buyers.
Higher mortgage rates have made home purchases more expensive, discouraging potential buyers.
Additionally, current homeowners have been hesitant to sell due to the higher rates, further contributing to the low inventory.
The S&P CoreLogic Case-Shiller National Home Price Index showed a 0.4% increase in home prices in March compared to February, on a seasonally adjusted basis.
On a year-over-year basis, the index rose by 0.7%, marking the smallest annual increase since May 2012.
The Case-Shiller index reports with a two-month delay, reflecting a three-month moving average.
The Federal Housing Finance Agency also reported a 3.6% increase in home prices in March compared to the previous year.
Overall, the recent rise in home prices indicates the ongoing challenges of low inventory and increased competition in the housing market.
Martin and Chelsea Matthews