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 July 31, 2013. Asking Home Prices Fall 0.3 Percent Month-Over-Month Asking home prices are now starting to lose steam as mortgage rates rise, inventory expands, and investor demand declines. Nationally, asking prices dropped 0.3 percent in July – the first month-over-month (M-o-M) decline since November 2012. Seasonally adjusted, prices rose 3.3 percent quarter-over-quarter (Q-o-Q), down from a peak of 4.2 percent in April. Year-over-year (Y-o-Y), prices are up 11 percent nationally; however, this change is an average over the past 12 months and is therefore slower to show changes than monthly and quarterly numbers.
|July 2013 Trulia Price Monitor Summary|
|% change inasking prices||# of 100 largestmetros with asking-price increases||% change in askingprices, excludingforeclosures|
|Month-over-month,seasonally adjusted||-0.3%*||Not reported||0.6%*|
|*M-o-M change is July versus June. Q-o-Q and Y-o-Y changes are three-month averages.|
|Hot Housing Markets Where Prices are Slowing Most|
|#||U.S. Metro||Y-o-Y %change,July 2013||Q-o-Q %change,July 2013||Q-o-Q %change,April 2013||Price slowdown= Difference inQ-o-Q % change,July minus April|
|1||Las Vegas, NV||32.9%||7.5%||12.7%||-5.2%|
|3||San Francisco, CA||17.2%||3.0%||6.5%||-3.5%|
|6||Ventura County, CA||18.6%||5.3%||8.2%||-2.9%|
|7||Grand Rapids, MI||18.2%||5.1%||7.6%||-2.6%|
|8||San Jose, CA||20.9%||4.5%||6.9%||-2.4%|
|10||Salt Lake City, UT||17.4%||3.3%||4.6%||-1.3%|
|12||Orange County, CA||23.3%||5.9%||7.0%||-1.1%|
|13||Los Angeles, CA||20.9%||5.6%||6.7%||-1.1%|
|Table shows metros with the biggest decline in Q-o-Q asking prices between April and July, among metros with large Y-o-Y increases. The final column equals the difference between the third and second data columns, but the numbers might not appear to add up due to rounding.|
|Housing Markets Where Rents Rose Most|
|#||U.S. Metro||Y-o-Y % changein rents||Y-o-Y % changein home prices|
|3||San Francisco, CA||8.1%||17.2%|
|Note: Among 25 largest rental markets|
- “If you were worried about a housing bubble, July’s asking-price slowdown will probably be the best news you’ve heard this year,” said Jed Kolko, Trulia’s Chief Economist. “The asking home price slowdown in July could be the start of the return to normal price gains. The blazing fast price increases we’ve seen in recent months could not last, especially with rising mortgage rates, expanding inventory, and declining investor interest.”
- “The biggest price slowdowns have come to some of the hottest local markets,” said Jed Kolko, Trulia’s Chief Economist. “California and Nevada remain the Wild West for asking home prices, with some of the sharpest drops during the bust, strongest rebounds over the past year, and now biggest slowdowns in the past quarter. In the rest of the country, the ride is less wild, but is on the same track: price gains have cooled in almost two-thirds of the largest metros.”
- To read the full report, see here.
- To see a graph of price changes from July 2012 to July 2013, see here.
- To download a list of the price and rent changes for the largest metros, see here.