Home prices jumped in March by the most since 2013

Home prices across the U.S. are going through the roof, rising at the fastest monthly pace in more than seven years as house-hunters compete for a dwindling supply of houses.

The S&P CoreLogic Case-Shiller 20-city home price index, released Tuesday, rose 13.3% in March from a year earlier, the biggest gain since December 2013. That increase followed a surge of 12% in February. "Strong demand and the scarce supply of homes for sale will keep a floor under home prices even if sales slow," Nancy Vanden Houten, lead economist with Oxford Economics, said in a research note. "Inventories increased in April, which is typical during the spring selling season, although we might see further gains as the health situation and economy continue to improve."