Housing market overheating before the start of summer

WASHINGTON, D.C. — If you’ve been trying to purchase a new home or any other piece of property lately, you know that the housing market is sizzling.

Prices are hitting record highs.

It’s happening across the country: The housing market is overheating before the start of summer.

New numbers tell a compelling story. Home prices rose in March at the fastest pace in more than seven years. S&P Case Shiller, one of the leading groups for measuring home sales, tracked prices up 13% that month compared to a year earlier.

There are several reasons why demand is outpacing supply. Mortgage rates are at historically low levels. Because of the pandemic, more people are looking for additional space at home, and COVID-19 has discouraged many homeowners from opening their homes to would-be buyers, shrinking the number of homes for sale.

The National Association of Home Builders says soaring lumber prices are making new homes on average $36,000 more expensive.

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