s129i2004 U.S. Home-Price Growth Rose to Record in Apil- WSs “Tas copys for your personal non-commercial use oly To order presentatin-ready copes for distribution to your colleagues cents or customers visit tiosihwwnlrepcints.com, tpsdwvnwsiconyartcies/usshome-price-growth-ose-to-record-invapelM1624972608 US.ECONOMY U.S. Home-Price Growth Rose to Record in April S&P CoreLogic Case-Shiller national index of average home prices up 14.6% Home prices have surged this year because of low mortgage-interest rates and a shortage of homes for sale. PHOTO: MIKE BLAKE/REUTERS. By Nicole Friedman Updated June 29, 2021 1:57 pm ET © Uistento artice 6 minutes) U.S. home prices surged at their fastest pace ever in April as buyers competing for a limited number of homes on the market pushed the booming housing market to new records. The S&P CoreLogic Case-Shiller National Home Price Index, which measures average home prices in major metropolitan areas across the nation, rose 14.6% in the year that ended in April, up from an 13.3% annual rate the prior month. April marked the highest annual rate of price growth since the index began in 1987. tps: www. ws). condarttesiu-s-home-prce-growih-rose-to-record-in-api-116248726087mod=hp_lead_pos6 48san US. Home-Price Grom Rose a Record in Api WS Home prices have surged this year due to low mortgage-interest rates, which have spurred strong demand, and a continued shortage of homes for sale. Many homes are getting multiple offers and selling above asking price. The home-price surge is widespread around the U.S., affecting buyers and sellers in big cities, suburbs and small towns. The median existing-home sales price in May rose almost 24% from a year earlier, topping $350,000 for the first time, the National Association of Realtors said earlier this month. Karibel Montero and Andy Rodrigues started looking last fall and bought a house in Lynnwood, Wash, in April. PHOTO: SINDY MERCHAN Home sales have started to decline in recent months, because there aren’t enough houses on the market for all the buyers looking to buy. Rising prices have also deterred buyers, and many builders are capping sales to manage their costs and production pace. Some economists expect the pace of home-price growth to slow as well by the end of the year. But real-estate agents say in many areas, the market is so frenzied that a slight slowdown in activity wouldn’t make a big difference. “It’s been crazy within the last year,” said Scott Chase, chief operating officer at Intero Real Estate Services, who is based in Los Altos, Calif. “My thinking is, is this going to slow down with people being vaccinated and wanting to go on vacation? [But] it is still incredibly active.” While the national pace of price gains is now faster than during the housing boom in the early 2000s, this market is less prone to a downturn, economists say. Ultralow mortgage hitps: www. ws) condartctestu-s-home-price-growih-rose-to-record-in-aprih116248726087mod=hp_leac_pos6 28era001 US. Home-Pce Groh Rose to Record in Ap - WSs interest rates mean that the typical home buyer’s monthly payment hasn’t risen as. rapidly as the typical house price, Lending standards are also stricter. ‘SHARE YOUR THOUGHTS, What is happening with the real estate market in your area? Join the conversation below. But fast-rising home prices and the limited inventory are making homeownership less attainable for first-time buyers or those with limited budgets. “affordability is worsening,” said Mark Fleming, chief economist at First American Financial Corp. “That’s what will eventually cause house prices to not continue to accelerate and then eventually begin to slow down.” Some workers may also decide to hold off on moving until they know their companies’ plans for returning to the office. The rise in remote work during the pandemic spurred many households to move farther from their offices. “Folks that were looking to buy a home, thinking that they were going to work remotely, are now increasingly putting those decisions on hold,” said Mark Vitner, senior economist ‘with Wells Fargo & Co. “I would expect that home prices are going to moderate all over the country later this year and in 2022.” ‘The Case-Shiller 10-city index gained 14.4% over the year ended in April, compared with a 12.9% increase in March. The 20-city index rose 14.9%, after an annual gain of 13.4% in March. Price growth accelerated in all of the 20 cities. Economists surveyed by The Wall Street Journal expected the 20-city index to gain 14.5%. Phoenix had the fastest year-over-year home-price growth in the country for the 23rd straight month, at 22.3%, followed by San Diego at 21.6%. Charlotte, N.C., Cleveland, Dallas, Denver and Seattle all recorded record-high annual price gains. Andy Rodrigues and Karibel Montero started looking for a house in the Seattle area last fall, because they were renting a one-bedroom apartment and wanted more space. “People were going crazy with the offers they were making,” Mr. Rodrigues said. “At some point, we actually decided to stop house hunting and just go and rent because we found it hitps: www. ws) condartctestu-s-home-price-growih-rose-to-record-in-aprih116248726087mod=hp_leac_pos6 38s129i2004 U.S. Home-Price Growth Rose to Record in Apil- WSs was really difficult.” The couple eventually bought a three-bedroom home in April in Lynnwood, Wash., farther from Seattle than they had originally looked. A separate measure of home-price growth by the Federal Housing Finance Agency also released Tuesday found a 15.7% increase in home prices in April from a year earlier, a record in data going back to 1991. Write to Nicole Friedman at nicole.friedman@wsj.com The Hot Housing Market Related coverage, selected by the editors For Many Buyers, a 5% Down Payment Isn't Housing Market Needs 5.5 Enough Report Says lion More Units, The Housing Market Is Crazier Than It Has America's Hottest Housing Market Is a Been Since 2006 Lakeside Idaho City This Housing Boom Is Different From the Last How to Trade Up in a Seller's Market One How to Buy a Home in 2021 How to Sell a Home in 2021 Appeared in the June 30, 2021, print edition as 'U.S. Home-Price Growth Surges a Record 14.6%,” UPCOMING EVENTS 1:00 PM - 1:45 PM EDT lune 30 WSJ Pro Cybersecurity Webinar: Aligning IT and Cybersecurity 2021 7:00 PM - 7:45 PM EDT lune 30 WS4+ Live: Daniel Kahneman and His Co-Authors on the Crisis of ‘Noise’ hitps: www. ws). condartctestu-s-home-price-growih-rose-to-record-in-apih116248726087mod=hp_leac_pos6 48s129i2004 U.S. Home-Price Growth Rose to Record in Apil- WSs 2021 ADD TO CALENDAR Copyright © 2021 Dow Jones & Company, nA Rights Reserved “Tas copys for your personal non-commercial use nly. 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