Business & Real Estate
- Published on Wednesday, 15 August 2012 01:00
- Written by Town Crier Report
Real estate information service Trulia’s price and rent monitors reported that asking prices on for-sale homes increased in June month-over-month and year-over-year.
The asking-price level in June was the fourth increase in five months nationwide.
Trulia’s price and rent monitors are the earliest leading indicators available of trends in home prices and rents. Based on for-sale homes and rentals listed on the real estate website, the 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.
Asking prices on for-sale homes rose nationally 0.3 percent in June month-over-month and 0.8 percent quarter-over-quarter. Additionally, year-over-year asking prices increased 0.3 percent. With the exception of nearly flat prices in May, prices jumped in four of the past five months. Nationally, 44 of the 100 largest metros experienced year-over-year price increases, and 84 of the 100 largest metros had quarter-over-quarter price increases.
“Denver, San Jose and Austin, which were spared the worst of the housing crisis, have strong price growth and strong job growth without a foreclosure overhang,” said Jed Kolko, Trulia’s chief economist.
Rent increases, however, outpaced price increases in 22 of the 25 largest rental markets, according to Trulia’s data. Nationally, rents were 5.4 percent higher in June than they were a year ago. Rents increased year-over-year in 24 of the 25 largest rental markets, except Las Vegas. Rent increases accelerated between March and June in most rental markets, with rents in San Francisco rising as much as 14.7 percent year-over-year in June from 10.9 percent in March.
Rents in San Jose in June increased 6 percent from June of last year, while asking price rose 6.2 percent.
“While rents have not quite outpaced asking price in our market, it is close,” said Suzanne Yost, president of the Silicon Valley Association of Realtors. “We continue to experience a marked decline in inventory, which cannot meet the high demand for housing in this area.”
Data from MLSListings Inc. report that in May, inventory of single-family homes decreased 37 percent from May 2011, while inventory of condos/townhouses dropped 45 percent.