Charlotte-area home prices rose to another record in June, as appreciation across the U.S. continued its streak of strong gains, according to new data out Tuesday.
The widely watched S&P CoreLogic Case-Shiller report, released monthly and covering the U.S., shows home prices in Charlotte rose 5.1 percent on average in June from the same month last year. Nationally, prices also jumped 5.1 percent.
For Charlotte, it marks the latest month this year that fast-rising home prices have hit a new high. Charlotte home prices first shattered their previous record set in 2007 this past March, and have set new highs every month since then. Some other large U.S. cities, including San Francisco, Boston and Denver, are also posting records.
The latest gains come as Charlotte and some other parts of the U.S. continue to face shortages of home construction and low supplies of existing homes up for sale. That lack of inventory is leading to bidding wars among many potential buyers, which has been a big booster of home prices.
In a statement Tuesday, David Blitzer, chairman of the index committee at S&P Dow Jones Indices, said there’s less than five months’ supply of existing homes for sale nationwide, “indicating a fairly tight market.”
June’s strongest appreciation occurred in the Northwest. Portland, Ore., posted the country’s biggest gain, 12.6 percent, followed by 11 percent in Seattle.
Prices nationally have risen at a consistent 4.8 annual pace over the past two years without showing any signs of slowing, the Case-Shiller report says.
That’s good news for homebuyers whose properties saw steep declines in value during the housing downturn. But fast-rising prices have also raised concerns about affordability for some buyers.
Blitzer noted that even in the slower Northeast home prices are climbing faster than inflation.
“Overall, residential real estate and housing is in good shape,” Blitzer said, adding that other sectors of the U.S. economy such as business capital spending continue to show weakness.
The Case-Shiller data is based only on repeat sales, meaning it does not track purchases of new homes.