U.S. home prices continued to soar in March as buyers struggled to block mortgages ahead of rising interest rates, industry experts said on Tuesday.
But with escalating concerns about the slowdown, some say the latest rise could mark growth in a sector that has risen 37 percent overall since the onset of the COVID-19 pandemic.
“The frenzy of home buyers reached another new high as eager buyers tried their last efforts to secure a home before mortgage rates rose,” the CoreLogic Case-Shiller Home Price Index report said. .
House prices rose 20% in March compared to the same period last year.
States, including Florida, have experienced a real estate boom, with prices in Tampa exploding 34.8% compared to the same month last year.
Tampa ousted Phoenix, which had experienced the highest price increases for 33 consecutive months.
House prices in Tampa, Florida, rose nearly 35 percent last year. Getty Images / EyeEm
The analysis found that the city of Arizona has seen home values rise by a staggering 59% since the start of the pandemic.
Miami saw prices rise 32% in March, followed by Dallas with 30.7% and San Diego with 29.6%.
The report found that cities with colder climates experienced more modest gains in recent months, while the West Coast and Sun Belt continued to experience sharper increases.
Still unstable due to the impact of the pandemic, New York City saw house prices rise 13.5% in March, according to the study.
House prices rose 20% this March compared to the same time last year. Getty Images / iStockphoto
The report warned of a likely slowdown in the coming months.
“The most recent evidence on the impact of higher rates on housing demand suggests that buyer demand is slowing, with fewer buyers competing for housing,” he said. “Houses that stay on the market for longer days also reflect the slowdown in demand.”