Home prices in Charlotte and around the country rose again in May, fueling cautious hopes of a housing market recovery, a report released Tuesday found.
Prices in the Charlotte metropolitan area increased 1 percent from April and 0.9 percent from May 2011, according to the closely watched S&P/Case-Shiller Home Price Index.
Housing prices rose month over month across the U.S., too, with all 20 markets the index tracks posting gains. The annual results weren’t as strong, though: Eight markets saw prices fall from May 2011, with Atlanta recording the biggest slide, 14.5 percent. No cities hit new lows in May.
Charlotte was one of three cities that saw annual growth slow in May from the month before, the index found, suggesting that difficulties remain, despite the seasonal strength. And on a seasonally adjusted basis, home prices in the Charlotte area were down 0.1 percent from April, the Case-Shiller report found.
“We have observed two consecutive months of increasing home prices and overall improvements in monthly and annual returns; however, we need to remember that spring and early summer are seasonally strong buying months, so this trend must continue throughout the summer and into the fall,” S&P Dow Jones index committee chairman David Blitzer said. “The housing market seems to be stabilizing, but we are definitely in a wait-and-see mode for the next few months.”
Case-Shiller’s 20-city composite recorded a 2.2 percent gain in May from the month before, though it slipped 0.7 percent from May 2011. On a seasonally adjusted basis, prices in the composite measure increased 0.9 percent.
Housing data in recent months have pointed to a recovery in the Charlotte market and beyond, with experts citing rising apartment rents, low interest rates and low inventories as factors driving home sales.
The latest Case-Shiller data show Phoenix, one of the hardest-hit cities in the housing collapse, posted the best annual return in May, with average home prices in the region rising 11.5 percent from the year before. Prices there remain more than 50 percent below their June 2006 peak, though.
The index is one of the most precise measures of home values because it tracks repeat sales. Case-Shiller reflects changes in price, not an actual price
