Charlotte home prices climbed 5.3 percent in July from the same month last year, setting a new record high as appreciation nationwide continued to post strong gains, according to a report released Tuesday.
New S&P CoreLogic Case-Shiller data show average home prices in the Charlotte region are nearly 5 percent higher than their previous peak in August 2007. Those gains come as home prices nationwide remain rising at about a 5 percent annual rate.
“The pace is probably not sustainable over the long term,” David Blitzer, managing director at S&P Dow Jones Indices, said in a statement.
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The Case-Shiller data tracks repeat-home sales, not sales of new homes.
Nationwide, home prices rose 5.1 percent in July. Case-Shiller’s national index is within 0.6 percent of its record high set in July 2006.
In Charlotte and elsewhere, low supplies of homes on the market have helped boost appreciation, as potential buyers drive up prices in bidding wars.
Despite the gains, Blitzer noted mortgage debt on one-to-four family homes is not high enough to cause concerns. He said such debt is 12.6 percent below the peak in the first quarter of 2008, just before the housing market collapse.
“There is no reason to fear that another massive collapse is around the corner,” he said.