Read more: Here’s what needs to happen for housing affordability to improve
The Case-Shiller 20-city composite index, which measures price growth across a sample of large US metro areas, posted a 14.9% annual gain, up from 13.4% in the previous month.
The report also showed that all 20 cities that make up the index experienced year-over-year price gains in April. Phoenix (+22.3%), San Diego (+21.6%), and Seattle (+20.2%) posted the highest annual gains.
“And while the acceleration may be met with concerns, mortgage interest rates remain 50% lower than they were in 2005, when home price growth last peaked, keeping the ratio of mortgage payments to monthly household income lower today,” Hepp said. “It’s probable that continued massive demand will keep pressure on prices, which are likely to remain at a double-digit growth rate throughout the remainder of 2021.”