Charlotte home prices inched up in May
Charlotte-area home prices barely inched up in May as the impact of homebuyer tax credits disappeared, according to a closely watched index released this morning.
In May, area prices rose 0.3 percent from April, according to the S&P/Case-Shiller Home Price Index. That was the largest monthly gain since prices began falling two years earlier. Prices rose from the previous month in 19 of the 20 market areas tracked by the index.
The monthly bump-ups were generally expected because spring is typically the best selling season. Tax credits, which expired April 30, also drove sales and buoyed prices. The tax-credit-induced sales will continue influencing results for the next month or so as the deals go through final closing.
Locally and nationally, the housing market continues to struggle with high unemployment and foreclosures. June results for sales and construction have shown weakening trends. Charlotte has held up better in some respects, but is lagging on the Case-Shiller index.
Compared with a year ago, Charlotte prices are down 2.8 percent. That’s well below the average gain of 4.6 percent for the index’s 20 markets.
The index is one of the most precise measures of home values because it tracks repeat sales of houses. Like stock market indexes, Case-Shiller reflects changes in prices, not an actual price. For Charlotte, prices remain at levels of about five years ago.
Las Vegas prices reached a new low, with the May index at 2000 levels. Detroit is the worst off, with prices at 1994 levels.
“It still looks possible that the housing market might bounce along the bottom for the foreseeable future, before showing any real improvement that will filter through to the rest of the economy,” said David Blitzer, chairman of S&P’s index committee.
Posted at 11:01AM Jul 27, 2010
by Christy Allen in General |
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