Tuesday, February 5, 2013

Charlotte area home prices rise in December, but less than U.S.average

Home prices in the Charlotte-Gastonia-Rock Hill metropolitan area rose by 5.1 percent in December compared to a year earlier, according to real estate analytics firm CoreLogic. 

On a monthly basis, home prices rose 0.5 percent in December compared to November.

Excluding distressed sales, such as foreclosures and short sales, prices rose 4.9 percent in December compared to 2011 and increased 1 percent compared to November 2012.

The local annual price appreciation is smaller than the national improvement in home prices, CoreLogic reports. Prices nationwide jumped 8.3 percent in December compared to a year earlier, the biggest increase seen since May 2006 and the 10th consecutive monthly increase in home prices.  On a month-to-month basis, prices rose 0.4 percent in December.  

CoreLogic expects that January home prices will rise 7.9 percent on an annual basis and fall by 1 percent on a monthly basis, reflecting a seasonal winter slowdown. 

"December marked 10 consecutive months of year-over-year home price improvements, and the strongest growth since the height of the last housing boom more than six years ago," said Mark Fleming, chief economist for CoreLogic. "We expect price growth to continue in January as our Pending HPI (home price index) shows strong year-over-year appreciation."

"We are heading into 2013 with home prices on the rebound," said Anand Nallathambi, president and CEO of CoreLogic. "The upward trend in home prices in 2012 was broad based with 46 of 50 states registering gains for the year. All signals point to a continued improvement in the fundamentals underpinning the U.S. housing market recovery."