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Charlotte Area Home Prices Continue To Rise Faster Than National Average
Real estate in the greater Charlotte metro area is in high demand - so much so that home prices in the region continue to rise at a pace faster than the national average.
According to data from the S&P CoreLogic Case-Shiller index for June, local home prices increased at an annual pace of 6 percent, slightly higher than the 5.8 percent pace for the United States. For the month prior, home prices had increased 6.1 percent in the Charlotte area, higher than the 5.6 percent national average.
"Price increases are supported by a tight housing market. Both the number of homes for sale and the number of days a house in on the market have declined for four to five years," said David Blitzer, managing director and chairman of the Index Committee at S&P Dow Jones Indices, in a statement. "Currently, the months-supply of existing homes for sale is low, at 4.2 months. In addition, housing starts remain below their pre-financial crisis peak as new home sales have not recovered as fast as existing home sales."
When compared to other major markets, Charlotte's price gains landed somewhat in the middle. Seattle posted the highest price increase at 13.5 percent, followed by Portland, Ore., at 8.2 percent and Dallas at 7.7 percent. On the other end of the spectrum, Cleveland posted an increase of only 2.9 percent. Washington, D.C. and Chicago also saw lower gains at 3.1 and 3.2 percent, respectively.
While higher prices may appear to threaten affordability in much of the country, Charlotte seems to be faring well. Blitzer said lower unemployment and higher job creation and higher wages have helped balance things out."Given current economic conditions and the tight housing market, an immediate reversal in home price trends appears unlikely," he added.Along with a thriving job market, Charlotte area residents also tend to enjoy a high quality of life with a comparatively low cost of living. With so much to offer, Charlotte's rising home values don't seem to be slowing home buyers down very much. Earlier this month, home sales figures in Charlotte were up 3.1 percent on a year-over-year basis; however, sales slowed down a bit from June to July. This small deceleration likely had more to do with shrinking inventory levels than lack of buyer interest.
"Sales are steady and pending contracts continue to be strong across the region, which is a good indicator of future sales and that buyers, who continue to face headwinds of inventory shortages and price increases, are still in the market to buy homes," said Roger Parham, president of the Charlotte Regional Realtor Association in a statement to the Charlotte Business Journal. Parham added, "We don't expect to see buyer fatigue in our market, since listing activity has been steady."
According to that article, the average sales price of a Charlotte home rose 5 percent year-over-year to $280,696. The median sales price increased 9.8 percent to $236,000. (Please note, these figures are subject to change and have likely already changed by the time this post is published. If you're curious about the latest market stats, connect with us today).
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