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August 5, 2014

Charlotte home prices rise 6.2% as increases cool off

Home prices in the Charlotte area were up in June, according to a report released Tuesday, but rose less than the national average and at a slower rate than in May.

Home prices in the Charlotte area were up in June, according to a report released Tuesday, but rose less than the national average and at a slower rate than in May.

The decelerating rise in home prices mirrors the trend nationwide, as home price increases continued to slow. Home price data firm CoreLogic said the trend is more a return to normal rates of home price increases than cause for concern.

“This reversion to normality that we are finally experiencing is expected to continue across the country and should further alleviate concern over diminishing affordability and the risk of another asset bubble,” Mark Fleming, chief economist for CoreLogic, said in a statement.

In the Charlotte area, home prices rose 6.2 percent in June compared with the same month last year. That was less than the 6.6 percent rise in Charlotte-area home prices in May.

Nationwide, home prices increased 7.5 percent in June. As in Charlotte, that was less than the 8.8 percent increase in May.

CoreLogic said the supply of homes for sale nationally remains tight. Combined with low interest rates and continued purchases by investors, that’s contributing to the increased prices.

“The expected surge in the number of homes for sale has not materialized to date as many homeowners are staying put and waiting for better economic times and higher prices in the future,” said CoreLogic CEO Anand Nallathambi in a statement.

Statewide, home prices have rebounded strongly since falling during the recession and its aftermath. According to CoreLogic, the average home price in North Carolina last month was 2.5 percent below the peak in July 2007.

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