Charlotte NC Area Home Prices Post Another Increase

From the Charlotte Observer:

Charlotte-area home prices logged another increase in July, the fourth monthly gain this year, according to a closely watched index released today.

Area sales remain in negative territory compared with a year ago, but rose .06 percent from June to July, according to the S&P/Case-Shiller Home Price Index. That’s the same as the revised monthly uptick for June, continued evidence of a slowly stabilizing housing market.

The broader index of 20 metropolitan areas also has been improving.

“We now seem to be witnessing some sustained monthly increases across many of the markets,” said David Blitzer, chairman of S&P’s index committee. But, he cautioned, downsides remain.

The first time homebuyers tax credit, which has fueled sales this year, expires Nov. 30. Blitzer also warned about the impact of “anticipated higher unemployment rates and a possible increase in foreclosures.”

Home prices and sales are still way off their highs, locally and nationwide, but the latest Case-Shiller reading is among the growing signs of improvement.

The index is especially meaningful because it tracks repeat sales of existing houses, the most precise broad measure of how home values are holding up. Charlotte’s prices held up longer than most markets but in April 2008, turned negative.

This March, Charlotte saw a tiny gain, followed by an April decline and now three consecutive months of gains. Those gains have narrowed the area’s price decline compared with a year ago to 9 percent. That’s the fifth-smallest of the group.

Compared with a year ago, all 20 markets remain down, although Cleveland and Dallas are nearing a positive reading. And 18 areas, including Charlotte, saw a monthly gain in July. Las Vegas remained in last place, with a 31.4 percent decline from a year ago.