Home prices rose by 21% in March from a year ago, the strongest March year-over-year increase on record, according to the S&P CoreLogic Case-Shiller Home Price Index, which developed the series almost three decades ago.

About 7 in 10 homes sold for more than the asking price.

“Homebuyer frenzy reached another new high as eager buyers pursued last-ditch efforts to secure a home purchase before the mortgage rate surge,” says Selma Hepp, deputy chief economist for CoreLogic.

The median existing single-family home price was $397,600 in April, up 14.8% from April 2021

Inflation and home prices

But there are indications that the Federal Reserve rate increases to control inflation are beginning to influence the housing market, experts say. And they expect a deceleration in the growth rate of U.S. home prices and better market conditions for those looking to buy homes.

The median existing-home sales price increased at a slower year-over-year pace of 14.8% to $391,200 in April, according to the National Association of Realtors. It grew by 19% from April 2020 to April 2021.