WASHINGTON — The housing market has grown so overheated that prices keep hitting record highs as demand outpaces supply — and roughly half of all U.S. houses are now selling above their list price.
Two years ago, before the pandemic, just a quarter of homes were selling above asking price, according to data from the real estate brokerage Redfin.
On Tuesday, new data further illuminated the red-hot nature of the housing market: Prices rose in March at the fastest pace in more than seven years.
The S&P CoreLogic Case-Shiller 20-city home price index jumped 13.3% that month compared with a year earlier — the biggest such gain since December 2013. That price surge followed a 12% year-over-year jump in February.
Several factors are driving the rise in home prices. The pandemic has encouraged more people to seek out the additional space provided by a single-family home. Yet at the same…