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Charlotte area's home prices slip downward

By Stella M. Hopkins

McClatchy-Tribune News Service

Published: October 28, 2009

CHARLOTTE - Charlotte-area home prices ticked down in August, breaking a three-month string of small gains, according to a closely watched index released Tuesday.

Area sales prices fell 0.4 percent in August, compared with July, according to the S&P/Case-Shiller Home Price Index. Charlotte was one of only three markets, of the 20 covered by the index, to show a monthly loss. The other two are Cleveland and Las Vegas.

Improvements in other areas pushed Charlotte's annual decline to sixth place, behind five markets with smaller declines. Still, the region's 8.6 percent loss compared with August 2008 is better than the double-digit annual declines of this spring.

Charlotte's monthly readings have seesawed this year with a tiny gain in March, a decline in April, three up months and now a decline.

August's small drop is a reminder of the Charlotte housing market's ongoing fragility. Foreclosures and other distressed sales have fueled a large share of deeply discounted closings, especially at the low end. First-time homebuyers, taking advantage of a hefty tax credit, also have been major buyers -- and bargain hunters.

The Nov. 30 expiration of the credit and ongoing job losses are likely to continue tamping down prices.
The credit might be extended.

All 20 markets remain in negative territory compared with a year ago, but overall the index has been improving.

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