With each passing month, those looking to sell a house in Charlotte are able to heighten the asking price of their residential property. The Queen City housing market has experienced unbridled strengthening recently, and the trend was again seen in August, as home prices ticked up further on both monthly and yearly bases.
Whether you're looking to buy or sell, current conditions are largely favorable. And, as mortgage rates remain below historical norms, consumers are afforded additional opportunities to take advantage and enter the market.
During the month of August, home prices in the greater Charlotte area rose 0.5 percent from July amounts, and more than 7 percent from year-ago figures, according to the latest Home Price Index released by CoreLogic. As this data reflects the overall real estate sector for the city, numbers are even higher when distressed properties are excluded from calculations. Not counting short sales and real estate-owned transactions, area home prices jumped nearly 10 percent annually.
A possible reason for the continued appreciation of home prices throughout the Queen City is the continued reduction of housing inventory, the Charlotte Observer reported. Though construction professionals throughout the region have increased their efforts in hopes of having supply meet demand, buyer activity has ticked up faster than the rate of housing completions in recent months.
Residential prices rise nationwide in August
Charlotte's housing sector is not the only market seeing higher home prices thanks to flagging inventory levels, however. Across the country, real estate prices moved up during the last full month of the summer season.
Including distressed sales, national home prices increased 0.9 percent from July and more than 12 percent from the same period the year prior, CoreLogic noted. Although a small hike was exhibited, Dr. Mark Fleming, chief economist for CoreLogic, said it was caused by a predicted seasonal slowdown.
"Home price gains were negligible month over month in August – an expected decrease in the pace of appreciation as housing enters the off-season," said Fleming. "While prices increased more than 12 percent on a year-over-year basis, the month-to-month change is more telling of this year's late summer trend."
Additional increases predicted for coming months
CoreLogic president and chief executive officer Anand Nallathambi echoed Fleming's sentiments, explaining that a dip in mortgage rates – after considerable jumps were seen in preceding months – could have helped home prices tick higher, and may lead to additional gains.
"After a strong run, the rate of home price appreciation slowed in August. In addition to normal seasonality, the recent sharp rise in mortgage rates off their historic lows was a clear driver behind the slowdown," said Nallathambi. "We anticipate moderate gains in home prices over the balance of this year, supported by the recent downward trend in rates and continued tight supplies of homes in many markets."
According to the CoreLogic Pending HPI, housing prices are expected to show a 12.7 percent year-over-year appreciation in September, and rise about 0.2 percent from August.
Are you ready to enter the local market? If so, the trusted professionals at Lodestone Real Estate can help you get started. Having grown into a trusted authority during its time in operation, this agency is equipped with the knowledge and expertise needed to find you the best house for your money.