Charlotte home prices rise 6.6% in May

07/01/2014 1:33 PM

07/01/2014 2:00 PM

Charlotte-area home prices rose 6.6 percent in May from the same month a year ago, as the pace of annual gains nationwide continues to slow, according to a report released Tuesday.

Housing-data provider CoreLogic said the Charlotte region has posted 29 months in a row of year-over-year price increases. Nationally, home prices have risen on an annual basis for 27 months in a row.

Home prices nationwide rose 8.8 percent in May from a year ago, a slower pace compared with earlier this year, according to the report on repeat sales.

Nationwide, price gains are cooling amid a modest increase in supplies of homes for sale, CoreLogic said. Low inventories have been seen as a key factor in the sizable annual price gains reported in Charlotte and elsewhere.

In the Charlotte metropolitan area, listings of existing homes were at a 5.4-month supply in May, according to the Charlotte Region Realtor Association. That still puts supplies in seller’s market territory. But supplies have been rising this year as owners list their homes to take advantage of warmer selling months.

Lower-than-expected demand for homes is also contributing to a slowdown in appreciation, according to CoreLogic. In May, sales of existing homes in the Charlotte metropolitan area fell 7 percent from a year ago, to 3,193 closings, the Realtor association said.

Many economists are expecting gains in home prices to continue to slow to more normal rates.

“As we move ahead, a moderation in home price increases over the next 12 months should help cool things down a bit and keep the housing recovery going,” Anand Nallathambi, president and CEO of CoreLogic, said in a statement.

Average prices in the Charlotte region as of May were about 4.5 percent above the peak in July 2007, according to the report on repeat sales.

Quickly rising home prices nationally over the past two years have raised concerns about homes becoming unaffordable for some potential buyers, especially those buying a home for the first time.

Nallathambi on Tuesday echoed those concerns, calling them “a negative factor in buying decisions for prospective purchasers.”

CoreLogic’s figures are based on sales of both distressed and nondistressed homes.

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