Asking prices for homes on the rise
Trulia today released the latest findings from the Trulia Price Monitor and the Trulia Rent Monitor, indicators that the real estate search company calls “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, 2012.
In July, Trulia reports the sixth consecutive month of asking-price increases, with a national increase of 1.1 percent year-over-year, and positive numbers in 62 out of 100 metro areas.
Trulia’s Chief Economist, Dr. Jed Kolko notes that “the housing price recovery is shifting from Florida to the West. More specifically: Tucson, San Jose, and Phoenix had the largest quarter-over-quarter price increases. Although Florida had been leading the price recovery in previous months, NO Florida metro is on the top-10 list for price gains in the most recent quarter.”
The report indicates that prices are rising faster in metros with stronger job growth and declining vacancies, and Dr. Kolko says “market fundamentals are finally driving price increases.”
Continuing the trend, rents keep outpacing prices, rising 5.3 percent over the year, with six major markets experiencing rent increases of 10 percent or more.
A housing recovery? Yes and no.
“The housing price recovery looks stronger than at any other point since the bust,” said Jed Kolko, Trulia’s Chief Economist. “For the first time, prices are up year over year in a majority of metros, and asking home prices have increased for six straight months. Rents, however, are rising even faster than prices in most markets. These price and rent increases, along with declining vacancies, should encourage new construction, which means housing will finally start contributing to the economic recovery.”
This week, the National Association of Home Builders released their Improving Housing Markets list revealing an overall improvement.
NAHB Chief Economist, Dr. David Crowe said, “The fact that we continue to see a strong core of metros showing up on the improving list each month adds to the growing evidence that the emerging housing recovery has a solid foundation on which to build as housing returns to its traditional role of driving economic growth.”
Trulia Price Monitor in your city
How is your city performing? Check out the list of the 100 largest metro areas below: