Home prices are still on a tear, Case-Shiller says | MarketWatch

The numbers: The S&P/Case-Shiller national index rose a seasonally adjusted 0.4% and was up 6.5% compared to a year ago in March. The 20-city index rose a seasonally adjusted 0.5% and was 6.8% higher than a year ago.

What happened: Home-price growth showed no sign of slowing down. Demand is strong, supply is short and favorable economic conditions are making it possible for many people to bid prices up.

Also read: Existing-home sales tumble as supply crunch squeezes

In fact, yearly price gains in the closely-watched 20-city index have accelerated every month since last June. The annual gain in the March report, which actually covers the three-month period ending in March, was the strongest since mid-2014.

Big picture: Many economists have expected headwinds like the recent tax law changes that changed home-ownership itemization, not to mention the sheer lack of inventory, to stifle the housing market, but that hasn’t showed up in pricing yet.

In March, Seattle was still on top, charting its 27th-straight month of double-digit annual price increases. Las Vegas, which is benefitting from an influx of coastal refugees, was second. But prices in Vegas are still 25% lower than their 2006 peak.

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Home prices are still on a tear, Case-Shiller says – MarketWatch.