US Home Prices Reach All-Time High as High Interest Rates Dry Up Listings

As high interest rates reduce the supply of homes for sale, housing prices have reached an all-time high.

On the 28th (local time), according to the Standard & Poor's (S&P) Dow Jones Indices, the U.S. 'CoreLogic Case-Shiller' Home Price Index for March rose 7.4% year-over-year (seasonally adjusted), marking a record high. It also increased by 0.3% compared to the previous month. This index measures the average home prices in 20 major U.S. cities.

Looking at the year-over-year increase by city, San Diego recorded the highest rise at 11.1%, followed by New York (9.2%), Cleveland (8.8%), and Los Angeles (8.8%).

The main factor behind the continued rise in home prices was the reduced supply of existing homes due to high interest rates. Homeowners who purchased properties with long-term fixed rates during the low-interest period were reluctant to refinance with new loans.

Brian Luke, Chief of S&P Dow Jones Indices, stated, "The housing markets in the 20 major metropolitan areas have seen year-over-year increases for four consecutive months, indicating broad and sustained growth in the housing sector."