ECONOMY

US home prices rise at modest pace in March, driven higher by limited supply

FILE - In this Monday, March 17, 2014, file photo, a woman walks across the street from the Venn on Market apartment and condominium building in San Francisco. U.S. home prices rose at a steady pace in March, pushed higher by a limited supply of houses for sale, according to the Standard & Poor's/Case-Shiller 20-city home price index released Tuesday, May 26, 2015. (AP Photo/Jeff Chiu, File)

FILE - In this Monday, March 17, 2014, file photo, a woman walks across the street from the Venn on Market apartment and condominium building in San Francisco. U.S. home prices rose at a steady pace in March, pushed higher by a limited supply of houses for sale, according to the Standard & Poor's/Case-Shiller 20-city home price index released Tuesday, May 26, 2015. (AP Photo/Jeff Chiu, File)  (The Associated Press)

U.S. home prices rose at a steady pace in March, pushed higher by a limited supply of houses for sale.

The Standard & Poor's/Case-Shiller 20-city home price index rose 5 percent in March from 12 months earlier. Prices increased at the same pace in February.

Home values are rising at a faster rate than incomes, potentially pricing many would-be buyers out of the market. Yet current increases have moderated from the double-digit gains of late 2013 and early last year.

The biggest increases were in San Francisco and Denver, where prices rose 10.3 percent and 10 percent respectively.

The Case-Shiller index covers roughly half of U.S. homes. The index measures prices compared with those in January 2000 and creates a three-month moving average. The March figures are the latest available.