Charlotte Home Prices Are On The Rise
According to CoreLogic’s Home Price Index report, the sale prices of existing homes within the Charlotte region including those distressed sales have risen 4.2 percent last December from one year ago. In November, the existing prices of homes within the Charlotte-Concord-Gastonia metropolitan statistical area increased 0.6 percent on a month-over-month basis.
If distressed sales (short sales and real estate owned transactions) are excluded, there has been an increase of 3.4 percent in December and 0.6 percent compared with November in the year-over-year existing home prices.
Unlike other data services, CoreLogic doesn’t base their figures on average or median values, but gives an index comparing repeat home sales for existing homes. This index is based on the price, time between sales, property type, loan type and distressed sales. Furthermore, their data comes from public records and the company’s proprietary databases.
Based on CoreLogic’s report, the local annual price increase was much lower than the national average. From December 2013 to December 2014, existing home values including distressed sales increased 5 percent. This signifies the 34th consecutive month of year-over-year price increase nationwide but a decrease of 0.1 percent in the rate of annual appreciation from November.
There were three states that were noted for their year-over-year depreciation last December namely Maryland, dropped 0.7 percent; Vermont dropped, 0.9 percent and Connecticut dropped 2.2 percent.
On the other hand, the states that showed the highest annual appreciation of home prices including distressed sales include Colorado, up 8.4 percent; Texas, up 7.8 percent; New York, up 7.6 percent; Nevada, up 7.3 percent; and Michigan, up 7.2 percent.
Home prices, excluding distressed sales, rose 4.9 percent nationally in December from a year earlier and 0.1 percent compared with November.
On December, 49 states along with the District of Columbia noted a year-over-year increase excluding Connecticut, which is the only state that had a drop of 1.1 percent. North Carolina experienced a 2.3 percent rise year-over-year.
CoreLogic’s report shows that in the last four months of 2014, the growth of home prices stabilized nationwide to approximately 5 percent. This is in contrast with the past home price appreciations reaching double digits. For instance, according to RealtyTrac, both California and Nevada saw a rise of more than 20 percent earlier in the year. Within the entire year last year, home prices rose 7.4 percent, but down from 11.1 percent a year ago.
“Nationally, home price appreciation took a pause in November and December 2014 and we expect a slow start to 2015,” said CoreLogic’s Chief Executive Anand Nallathambi. “As the year progresses, we expect upward pressure as low inventories and more first-time buyers drive up home prices.”
Regardless of the slow rise in home prices, CoreLogic still forecasts continued rise in home values. They as well predict that home prices along with distressed sales will increase 0.1 percent nationally in January from December. Aside from this, from December 2014 to December 2015, CoreLogic anticipates that prices will rise 4.8 percent.
Nationwide, home prices excluding distressed sales are foreseen to rise 0.1 percent from December to January and 4.5 percent from December 2014 to December 2015.
CoreLogic is a company providing property information, analytics and data services based in Irvine, California.
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