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.