With the new year now underway, individuals across the country are likely shifting their focus from the holidays back to their regular duties. For some, this includes readying for a residential housing purchase in 2014.
Accordingly, those looking to sell a house in Charlotte are well positioned to profit in the coming months, as home prices continued to push higher at the end of 2013. With mortgage rates expected to rise from their current level in the near future, the new year may see heightened transaction activity in addition to sale prices.
Purchase amounts for Charlotte homes recently rose
During October, housing values within the Queen City metropolitan area increased on both a monthly and yearly basis, according to the latest S&P/Case-Shiller Home Price Index released by S&P Dow Jones Indices. Compared to the preceding month, the region’s sale prices improved 0.6 percent. Year-over-year, a 8.8 percent hike was observed, which points toward the largest annual uptick on record since Charlotte was first included in the monthly index 26 years ago.
David Blitzer, chairman of the Index Committee at S&P Dow Jones Indices, said improvement in value was widespread, as many other metro areas aside from Charlotte saw bigger price tags on available homes recently. However, he added that the Federal Reserve Board’s recent decision to begin tapering its bond-buying initiative may see changes in the coming year.
“Home prices increased again in October,” Blitzer said. “However, monthly numbers show we are living on borrowed time and the boom is fading. The key economic question facing housing is the Fed’s future course to scale back quantitative easing and how this will affect mortgage rates. Other housing data paint a mixed picture suggesting that we may be close to the peak gains in prices. However, other economic data point to somewhat faster growth in the new year. Most forecasts for home prices point to single digit growth in 2014.”
Charlotte poised for further gains in home prices
Following the significant improvement in housing transaction prices observed in October, November also saw substantial increases, providing additional evidence the new year could see continued appreciation – albeit at a slower pace.
During November, the Queen City saw the average home sale price rise to $223,725, according to the Charlotte Regional Realtor Association. This figure was up more than $13,000 from the month prior, and marked a 9.2 percent uptick on an annual basis. Meanwhile, the median sale price rose 9.4 percent year-over-year to amount to $175,000.
The Charlotte Observer reported that the metro area has posted year-over-year home price increases every month since March 2012, illustrating the city’s economic strength and likeliness to make further progress in the ongoing recovery effort.
“After a protracted period of challenging real estate markets, it’s not unusual to have a significant rebound,” said CRRA president Eric Locher, according to the local news source. “It’s also not unusual to have a little bit of slowing down in that rebound. So we will probably see going forward smaller increases, but we anticipate that ’14 will continue to be a good year.”