Based on Standard & Poor’s/Case-Shiller Home Price Index, Charlotte defied the national pattern of slowing home value appreciation last November 2014.
The 20-city home price index showed a rise of 4.3 percent in November – that’s lower from the annual increase of 4.5 percent last October. This signifies the 12th consecutive month of reducing home price gains and the weakest increase since October 2012. Aside from this, the November index dropped 0.2 percent from October – 173.36 to 172.94.
However, Charlotte – together with eight other cities – showed a stronger yearly price growth in November compared to a month earlier.
Charlotte’s November index increased by 3.3 percent from 128.25 that is higher than the 2.8 percent increase noted from October 2013 to 2014.
The Queen City’s index reached its highest on August 2007 at 135.88 with its lowest index on January 2012 at 108.39.
From October’s index of 128.64, it dropped 0.3 percent month over month in November.
The eight other cities that reported a stronger annual price growth in November compared with October are the following: Atlanta, Chicago, Dallas, Denver, Los Angeles, Portland, Ore., San Diego and Tampa, Fla.
San Francisco gets the top spot for the city with the highest year-over-year price increases in November at 8.9 percent. This is followed by Miami at 8.6 percent, Dallas and Las Vegas at 7.7 percent and Denver at 7.5 percent.
“Prospects for a home run in 2015 aren’t good,” Managing Director of S&O Dow Hones Indices David Blitzer said in his statement. “Strong price gains are limited to California, Florida, the Pacific Northwest, Denver and Dallas. Most of the rest of the country is lagging the national index gains.”
Cities that showed a nearly stagnant price index include Cleveland up at 0.6 percent, Minneapolis and New York up at 1.5 percent each, and Washington, D.C. and Phoenix up at 1.9 percent each.
Two of the struggles faced by the housing market as mentioned by Blitzer include consistent low inventory levels as well as rigid mortgage qualification standards.
In December 2014, Charlotte’s inventory was at 4.1 months, which is a drop from 5.1 months last year and 6.0 months regarded to be a stable market.
Furthermore, Blitzer also cited that there was a decline in distressed sales as well as investor purchases for buy-to-rent properties during the fourth quarter.
Standard & Poor’s/Case-Shiller Composite of 20 Home Price Index is based on the value-weight average of 20 metropolitan area indices. The indices’ base value of 100 exemplifies home prices in January 2000. Hence, if the current index value is 150, it translates to a 50 percent appreciation rate since January 2000 for a typical house located within the subject market.