TRULIA REVEALS ASKING PRICES UP FOR SIXTH STRAIGHT MONTH, BOOSTED BY FEWER VACANCIES AND JOB GROWTH
Las Vegas, Phoenix and Tucson Among Biggest Home Price Gainers in Most Recent Quarter
SAN FRANCISCO, August 7, 2012 – Trulia today released the latest findings from the Trulia Price Monitor and the Trulia Rent Monitor, 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.
Asking Prices Rise in July, Posting Annual Gains in Most Markets
Asking prices on for-sale homes–which lead sales prices by approximately two or more months – increased 0.5 percent in July month over month (M-o-M), seasonally adjusted, for a sixth straight monthly gain. Meanwhile, asking prices rose nationally 1.2 percent quarter over quarter (Q-o-Q), seasonally adjusted. Year-over-year (Y-o-Y) asking prices rose by 1.1 percent; excluding foreclosures, asking prices rose Y-o-Y by 2.7 percent. For the first time, a majority (62 out of 100) of large metros had Y-o-Y price increases.
July 2012 Trulia Price Monitor Summary
% change in asking prices
# of 100 largest metros with asking-price increases
% change in asking prices, excluding foreclosures
Month-over-month, seasonally adjusted
Quarter-over-quarter, seasonally adjusted
Quarterly Price Increases in Las Vegas, Phoenix and Tucson Outpace Miami
Comparing the yearly gains with the most recent quarterly gains, the housing price recovery has clearly shifted from Florida to Arizona, California and Nevada. Although Miami and other Florida metros had large Y-o-Y price increases, Las Vegas and other Southwestern metros had faster gains in the most recent quarter. Tucson, San Jose and Phoenix had the largest Q-o-Q price gains, and no Florida market made the top ten list for the quarter. Price increases in Florida decelerated in the most recent quarter because last year’s gains have made Florida housing less of a bargain for investors and foreigners than it was. Meanwhile, tighter vacancies and stronger job growth pushed up prices in Las Vegas, San Jose, San Francisco and Omaha Q-o-Q.
Metros with Largest Asking Home Price Increases
% change in asking prices
San Jose, CA
Baton Rouge, LA
Las Vegas, NV
San Francisco, CA
Note: Among 100 largest metros.
Rents Rise 5.3 Percent Nationally, Continuing Upward Climb
Rents increased Y-o-Y in 24 of the 25 largest rental markets, with rent increases topping 10 percent in San Francisco, Miami, Oakland, Denver, Seattle and Boston. Three months ago, only two large rental markets – San Francisco and Miami – had Y-o-Y rent increases of 10 percent or more. Rents are rising faster than asking prices in 21 of the 25 largest rental markets Y-o-Y.
Metros with Largest Rent Increases
% change in asking rents, year-over-year, July 2012
% change in asking rents, year-over-year, April 2012
San Francisco, CA
New York, NY-NJ
Note: Among the 25 largest rental markets.
•“Stronger job growth and declining vacancies, rather than bargain hunting, are now driving the home-price recovery,” said Jed Kolko, Trulia’s Chief Economist. “This shift to market fundamentals helps housing prices in Las Vegas, Phoenix and the San Francisco Bay Area, but hurts Florida, where investors had been boosting prices and where vacancies remain stubbornly high.”
•“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.”
•To read the full report, see here.
•To download the full list of price and rent changes for the largest metro areas, see here.
•To download a graph of price changes from November 2010 to July 2012, see here.
To view the full methodology and 2012 release schedule, see here. The next release of the Trulia Price Monitor and the Trulia Rent Monitor will be Wednesday, September 5, at 10AM ET.