Home values are only rising faster in three cities than they are in Charlotte

A home for sale on Wednesday, August 3, 2016.
A home for sale on Wednesday, August 3, 2016.

Home values in Charlotte rose at the fourth-highest rate among U.S. cities last month, according to a new report from real estate-tracking firm Zillow.

Charlotte home values on average were 9 percent higher in September than they were during the same month a year ago, Zillow found. That’s a faster rise than the national rate of 6.9 percent.

The average home value in Charlotte hit $178,700, according to Zillow. The Zillow report is in line with the latest data from the Charlotte Regional Realtors Association, which show sales prices continuing to rise amidst extremely tight inventory.

Zillow Chief Economist Svenja Gudell said limited supply and high demand is impacting markets nationwide. Gudell said that despite the rapidly increasing prices, another housing bubble isn’t being inflated.

“It might be easy to assume another bubble is emerging, with home values growing 10 or 12 percent per year, but don’t worry,” Guddell said, in a statement. “The market is reacting to basic economic laws, and is behaving exactly the way we would expect it to given good overall growth, limited supply of homes for sale and decent housing affordability thanks to low mortgage interest rates.”

Only three cities saw their home values rise faster than Charlotte: Las Vegas (up 10.2 percent), San Jose, Calif. (up 10.3 percent) and Seattle, home of both Amazon and skyrocketing home prices (up 12.4 percent).

Ely Portillo: 704-358-5041, @ESPortillo