Real Estate Information Archive


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Charlotte-area home prices up 4.4% as gains continue to slow

by David DiGioia

Charlotte-area home prices rose 4.4 percent in April from a year ago, as a trend of slowing annual appreciation in the region and nationwide continued, a closely watched survey showed Tuesday.

April marked the 26th month in a row the Charlotte region has posted year-over-year gains in prices, according to the Standard & Poor's/Case-Shiller index, which is based on repeat-sales of existing homes.

Annual appreciation in the region has slowed for sixth consecutive months. Nationwide, annual gains have slowed for five months in a row.

The 20-city index and a separate 10-city index measured a 10.8 percent increase in year-over-year prices, the lowest annual gain since March 2013. Nineteen of the 20 cities included in the index posted lower annual gains in April than in March, with the exception of Boston.

“Although home prices rose in April, the annual gains weakened,” David Blitzer, chairman of the Index Committee at S&P Dow Jones Indices, said in a statement. “Overall, prices are rising month-to-month but at a slower rate.”

In Charlotte, fewer home purchases by big investors have been cited as a reason for slowing price gains. The investors have bought homes across the U.S. since the housing downturn to turn them into rentals. Earlier this month, the Charlotte Regional Realtor Association report attributed a drop in May home sales from the same month a year ago to the pullback in purchases by the investors.

A low supply of homes for sale has been cited as a key factor pushing up home prices in Charlotte and elsewhere.

Last month, the Charlotte region had a 5.4-month supply of existing homes for sale, down from a 5.7-month supply a year ago, according to the Charlotte Regional Realtor Association. A buyer’s market is one with six months or more of inventory.

In Charlotte, year-over-year appreciation has been slowing every month since October 2013, when prices rose 8.5 percent. That was the largest annual gain on records going back to 1987, according to Case-Shiller.

“Charlotte has one of the lower year-over-year increases,” said Craig Lazzara, global head of index investment strategy for S&P Dow Jones Indices. “From the trough, Charlotte has recovered about 16 percent.”

Home prices in Charlotte remain 7.6 percent below their peak in August 2007 but are above pre-recession levels.

Some economists point to stricter lending requirements since the housing crisis as making it difficult for first-time buyers to purchase a home. That, coupled with higher home prices, have pushed some first-time buyers out of the housing market, economists say.

“First-time homebuyers are not back in force and qualifying for a mortgage remains challenging,” Blitzer said.

“My first-time homebuyers are working with a budget,” said Charlotte-area realtor Alyce Walker of Re/Max Executive Realty. “They’re not willing to add to their debt with a mortgage.”

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RRE 2012 Wurtzbacher Old Course

A section of south Charlotte was second among U.S. ZIP codes for having the most households relocate to the area during May, according to a firm that markets to consumers who have recently moved.

Atlanta-based Welcomemat Services Inc.reports that the 77494 ZIP code, which is in Katy, Texas, saw more household move-ins during the month of May than any other ZIP code in the country. That area had 596 new households that either purchased or rented a home.

Following closely was Charlotte's 28277 ZIP code, coming in at No. 2 with 594 households for the same timeframe. That area lies on the south side of the city and includes Ballantyne.

ZIP codes in Chicago; Virginia Beach, Va.; and McKinney, Texas, rounded out the top five.

Welcomemat Services is a national franchise that collects data to help local businesses connect with new residents via a direct-mail welcome packet.

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Charlotte home prices rise 6.9%

by David DiGioia

Charlotte-area home prices rose 6.9 percent in April from a year ago, as low supplies of properties for sale continued to drive prices higher nationwide, a report Tuesday showed.

The region’s home prices climbed 1.1 percent from March, according to the report from real estate data firm CoreLogic. The figures are based on repeat sales of distressed and nondistressed properties.

Nationwide, home prices are expected to keep rising this year, as the inventory of homes on the market remains tight, Sam Khater, deputy chief economist for the Irvine, Calif.-based company, said in a statement.

Prices nationally jumped 10.5 percent from April 2013 for the 26 month in a row of consecutive year-over-year gains, CoreLogic said. Prices increased 2.1 percent from March.

Like other companies that track the U.S. housing market, CoreLogic says that annual gains in home prices have been slowing.

The national rate of annual appreciation in April marked the slowest pace in 14 months, according to CoreLogic.

CoreLogic projects U.S. home prices will increase about 6.3 percent in May from the same month last year and 1 percent from April.

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David DiGioia
Realty Executives Unlimited
17718 Kings Point Dr, Suite B
Cornelius NC 28031
Fax: (866)476-8652