This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Home Prices Surge in Cities With Strong Job Growth: Trulia

NEW YORK ( TheStreet) -- Job growth, not just investor demand, is boosting home prices, according to Trulia's Chief Economist Jed Kolko.

According to Trulia's Price Monitor, asking home prices, a leading indicator of sales price, rose 8.3% year-over-year in April. The index adjusts for seasonality and for the mix of homes sold.

Prices were up 4.3% quarter-over-quarter and 1.3% month-over-month on a seasonally adjusted basis.

Excluding distressed sales, prices rose 9.3% year-over-year.

Earlier Tuesday, CoreLogic said its Home Price Index gained 10.5% in March and its Pending HPI projected 9.6% year-over-year gains in April.

The more striking data from Trulia's report highlighted the impact of job growth on home prices. Asking prices leaped the most in cities where the jobs market is booming, suggesting underlying fundamentals behind the housing recovery are strengthening.

"Strong job growth and the housing recovery go hand-in-hand," the report said. "Nationally, job growth increased 1.5 percent Y-o-Y in March. In San Jose, Orange County, San Francisco, and Phoenix -- where asking prices rose more than 18 percent Y-o-Y -- job growth was well above the national average. In fact, only the Detroit suburb of Warren-Troy-Farmington Hills, MI was among the list of top 10 markets with the highest price gains without above average job growth."

Meanwhile rents rose 2.4% nationally, the pace of rent growth has slowed, which is good news for renters who are still unable to afford homes. In the cities of San Francisco, Las Vegas, Sacramento and Seattle, rents are declining even though home prices are increasing at a scorching pace.

The housing recovery is welcome news for sellers waiting on the sidelines and underwater homeowners waiting for a recovery. But it has its share of skeptics.

The most cited argument is that the housing recovery is being driven by investor demand, with most first-time home buyers still largely cut off from the market due to tight mortgage credit conditions.

Still, recent reports show that buyers are in fact, fueling the housing demand, not investors. .

According to the Campbell/Inside Mortgage Finance Survey released last week, investors accounted for just 21.8% of home sales in March. Investors accounted for only 13% of sales of non-distressed properties, the largest segment of the market. Current homeowners had a 50% market share and first-time homebuyers a 37% share of the non-distressed housing market.
1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $93.24 -1.01%
FB $117.26 -0.68%
GOOG $701.43 0.82%
TSLA $212.10 -4.70%
YHOO $36.94 2.61%


Chart of I:DJI
DOW 17,660.71 +9.45 0.05%
S&P 500 2,050.63 -0.49 -0.02%
NASDAQ 4,717.0940 -8.5450 -0.18%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs