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Charlotte home prices rise nearly 10% in May

Charlotte home prices jumped nearly 10 percent in May from a year ago, the 15th consecutive year-over-year increase and another sign of a strengthening housing market.

Real estate data firm CoreLogic said Tuesday that Charlotte-area prices increased 9.5 percent. That was below the 12.2 percent U.S. increase, which was the largest year-over-year gain since February 2006.

From April to May, Charlotte-area home prices rose 2.7 percent. Nationwide, the increase was 2.6 percent.

“It’s been more than seven years since the housing market last experienced the increases that we saw in May, with indications that the summer months will continue to see significant gains,” Mark Fleming, chief economist for CoreLogic, said Tuesday. “As we approach the halfway point of 2013, home prices continue to respond positively to the reductions in home inventory thus far.”

In Charlotte, real estate brokers consider the region to be in a seller’s market, widely defined as one in which the number of homes for sale is below a six-month supply. Area home prices have been on an upward trend for months, helped in part by the shrinking inventory, which has led to sellers getting multiple offers for homes. In May, the region had a five-month supply, according to the Charlotte Regional Realtor Association’s latest figures.

A week ago, the April Standard & Poor’s Case-Shiller home price index was released for the Charlotte area. It showed home prices jumped 7.3 percent from the same month last year, marking the largest year-over-year gain the city has seen since March 2012.

“Home price appreciation, particularly in much of the western half of the U.S., is increasing at a torrid pace,” Anand Nallathambi, president and CEO of CoreLogic, said Tuesday. “Across the country, pent-up demand and continued low interest rates are fueling strong demand for a limited inventory of properties. We expect that trend to continue to drive up prices throughout the balance of the summer months.”

Roberts: 704-358-5248; Twitter: @DeonERoberts
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