Trulia Reports Asking Home Prices up 10.7 Percent Year-Over-Year Nationally as Mortgage Rates Rise
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 price increases foreclosures Month-over-month, 1.5% Not reported 1.5% seasonally adjusted Quarter-over-quarter, 4.1% 98 4.5% seasonally adjusted Year-over-year 10.7% 99* 11.4% * Only Philadelphia saw a year-over-year decline, and only slightly, at -0.01%.
Asking Prices Rise in 99 of the 100 Largest Metros
Nationally, 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% 2 Chicago, IL 8.4% 3 Lake County-Kenosha County, IL-WI 7.9% 4 Baltimore, MD 7.1% 5 St. Louis, MO-IL 6.4% 6 Fairfield County, CT 6.4% 7 Virginia Beach-Norfolk, VA-NC 5.3% 8 Gary, IN 5.3% 9 New Orleans, LA 4.6% 10 Newark, NJ-PA 3.1% Note: Among markets where prices bottomed in the last 6 months.
Rents Fall Where Asking Prices Skyrocket
Marking its biggest Y-o-Y increase since January, rents rose 2.8 percent Y-o-Y nationally in June. Rents climbed most in Houston, Miami, and Tampa-St. Petersburg, but fell in markets where asking prices were up more than 30 percent: Las Vegas, Oakland, and Sacramento. In fact, asking prices outpaced rents in 22 of the 25 largest rental markets. Only in Houston, New York, and Philadelphia did rents rise faster than asking prices.
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% 2 Oakland, CA -0.5% 34.2% 3 Sacramento, CA -0.4% 32.6% 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.” MULTIMEDIA
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. METHODOLOGY
To view the full methodology and 2013 release schedule, see here. The next release of the Trulia Price Monitor and the Trulia Rent Monitor will be Tuesday, August 6, at 10 AM ET.
ABOUT TRULIA, INC.
Trulia (NYSE: TRLA) gives home buyers, sellers, owners, and renters the inside scoop on properties, places, and real estate professionals. Trulia has unique info on the areas people want to live that can't be found anywhere else: users can learn about agents, neighborhoods, schools, crime, commute times, and even ask the local community questions. Real estate professionals use Trulia to connect with millions of transaction-ready buyers and sellers each month via our hyperlocal advertising services, social recommendations, and top-rated mobile real estate apps. Trulia is headquartered in downtown San Francisco. Trulia is a registered trademark of Trulia, Inc.
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