Trulia, Inc. (NYSE: TRLA), a leading online marketplace for home buyers, sellers, renters, and real estate professionals, today released the latest findings from the Trulia Price Monitor and the Trulia Rent Monitor. These indices are the earliest leading indicators available of trends in home prices and rents. Based on the for-sale homes and rentals listed on Trulia, these monitors take into account changes in the mix of listed homes and reflect trends in prices and rents for similar homes in similar neighborhoods through June 30, 2013. To read the full report, see here.
Asking Home Prices Show No Signs of Cooling Off … Yet
Nationally, asking home prices rose 10.7 percent year-over-year (Y-o-Y) in June. Excluding foreclosures, prices jumped 11.4 percent Y-o-Y, signaling that the current rise in asking prices is not primarily driven by the shift away from foreclosure to non-distressed homes for sale. However, the rate of increase in asking prices will eventually slow down as mortgage rates rise, inventory expands, and investor demand falls.
|June 2013 Trulia Price Monitor Summary|
|% change in||# of 100 largest||% change in asking|
|asking prices||metros with asking-||prices, excluding|
|* Only Philadelphia saw a year-over-year decline, and only slightly, at -0.01%.|
Asking Prices Rise in 99 of the 100 Largest MetrosNationally, asking home prices bottomed in February 2012 – but the turnaround has been uneven. Prices first began to rebound two years ago in San Jose, Phoenix, Denver, Miami, and a few other housing markets where job growth or bargain buying started boosting prices earlier. Meanwhile, prices continued to fall in several East Coast and Midwest markets until three to six months ago. Now with the housing recovery in full swing, asking prices rose in 99 of the 100 largest metros. Among these recently bottoming markets, prices rose more than 7 percent in Edison- New Brunswick, NJ, Chicago, Lake County-Kenosha County, IL-WI, and Baltimore.
|Housing Markets Where Asking Prices Rose Most After Bottoming Recently|
|#||U.S. Metro||Y-o-Y% change in asking prices|
|1||Edison- New Brunswick, NJ||8.6%|
|3||Lake County-Kenosha County, IL-WI||7.9%|
|5||St. Louis, MO-IL||6.4%|
|6||Fairfield County, CT||6.4%|
|7||Virginia Beach- Norfolk, VA-NC||5.3%|
|9||New Orleans, LA||4.6%|
|Note: Among markets where prices bottomed in the last 6 months.|
|Housing Markets Where Rents Fell Most|
|#||U.S. Metro||Y-o-Y% change||Y-o-Y% change|
|in rents||in asking prices|
|1||Las Vegas, NV||-0.8%||30.8%|
|Among 25 largest rental markets.|
- “Rising home prices have swept the country,” said Jed Kolko, Trulia’s Chief Economist. “Local markets that suffered most during the housing crisis are seeing the biggest price rebounds today. Now even markets that escaped the worst of the bust, like Chicago and Baltimore, are seeing prices climb. However, these runaway price gains won’t last: both rising mortgage rates and slowly growing inventories should start tapping the brakes on home prices, preventing them from rising back into bubble territory.”
- “In the past year, buying a home has become at least 20 percent more expensive,” said Jed Kolko, Trulia’s Chief Economist. “Roughly half of this higher cost comes from soaring home prices, which are up almost 11 percent in the past year. The other half comes from rising mortgage rates, which have added another 10 percent to the overall cost of homeownership. For young first-time homebuyers who don’t remember life during and before the bubble, these rising costs are a rude awakening.”
- To download a graph of price changes from July 2011 to June 2013, see here.
- To download a list of the price and rent changes for the largest metros, see here.
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