By Nathalie Voit

Home prices soared more than 20% year-over-year in April even as mortgage rates remained well over the 5% mark, Zillow said in its latest Real Estate Market Report.

According to Zillow’s home value index, the typical house in the United States is now worth $344,141, 20.9% more than one year ago. April marked the thirteenth consecutive month of record year-over-year price increases in the housing market. Home prices appreciated 20.6% on the year in March.

Home values accelerated the fastest in the Sun Belt region. Austin took the top spot, reporting 37.6% annual home price growth for the month, followed by Raleigh (up 36.4%), Tampa (up 35.1%), Las Vegas (up 33.3%), and Nashville (up 32.8%). Washington D.C. (up 11%), Baltimore (up 11.4%), and Milwaukee (up 12%) saw the slowest home price growth over the year.

The record pace of growth arrives despite surging mortgage rates. The latest weekly mortgage rate data from Freddie Mac saw the national average on the 30‑year fixed-rate mortgage hit 5.1% in the week ending May 25, down from 5.25% in the previous week. Even after decreasing for the second week in a row in May, rates are still well above last year’s historic lows. During the same time last May, Freddie Mac said the 30-year fixed averaged just 2.95%.

Elevated mortgage rates have led to a significant increase in monthly mortgage costs. The monthly mortgage payment for a typical homeowner with a 30-year fixed mortgage rate and a 20% down payment is now $1,475, 52.5% higher than one year ago. Month-over-month, the payment on the typical U.S. home rose 11.7%.

Despite the record home price appreciation and rising mortgage costs, Zillow said buyer demand remains strong within the real estate market. In April, homes listed for sale on the market sold in just seven days. Meanwhile, the typical house in April 2019 sat on the market for 24 days before an offer was accepted.

Zillow economist Nicole Bachaud said she expects the market to begin “rebalancing” this spring as surging costs “keep enough would-be buyers on the sidelines for inventory to begin catching up with demand.” “But we have not yet reached that point,” she noted in the report.

Bachaud added:

“Nearly half of homes are selling above their list price, and April sales happened as fast as we’ve ever recorded. It may very well be that fewer people are trying to buy, but with bidding wars continuing to drive up prices on limited inventory, those in the market today likely won’t feel much relief.”

According to Zillow, San Francisco, Seattle, and San Jose top the list as the country’s most competitive markets, with more than three-quarters of homes selling above their asking price in those metro areas in March (when the latest data was available).