By Peter Ricci
Real estate website Trulia is reporting that, boosted by fewer housing vacancies and relatively impressive job growth, asking prices have risen in its Trulia Price Monitor for the sixth straight month.
A leading indicator on home price trends, Trulia based the findings on for-sale homes on its site in the country’s largest metro areas through July 31.
Asking Prices, Rents Both Rise in July
In addition to asking prices, Trulia also tracked the price of rental units in its Trulia Rent Monitor, and found that the increase in rent nationwide surpassed that of home asking prices. Some of the key findings included:
- From June to July, asking price increased 0.5 percent, seasonally adjusted. It was the sixth straight monthly increase for asking prices on Trulia.
- Quarter-over-quarter, the increase was even stronger, rising by 1.2 percent, and excluding foreclosures, it was stronger still year-over-year at 2.7 percent.
- The majority of large metros (62 of 100) had a year-over-year increase, the first time that’s happened.
- The demand for rentals continued to push rents skyward, with rents increasing 5.3 percent nationally and in 24 of the nation’s 25 largest rental markets. In San Francisco, Miami and Houston, for instance, rents posted respective year-over-year increases of 12.4, 11.3 and 8.5 percent.
The Future Recovery in Housing
Jed Kolko, Trulia’s chief economist, said all the signs in Trulia’s report point to an optimistic future for housing.
“The housing price recovery looks stronger than at any other point since the bust,” Kolko said. “These price and rent increases, along with declining vacancies, should encourage new construction, which means housing will finally start contributing to the economic recovery.”
Carmen Rodriguez, an agent with Coldwell Banker in Edgebrook, said that she is seeing similar trends in pricing in her region of the city.
“Yes, price increases do seem to be more common through the first part of this year,” she said. “There’s not exactly what I’d call a dramatic up-tick in numbers, but the plummet seems to have disappeared, for now. Mostly what I’ve seen is that sellers in the market now are serious, as are buyers, so the process is more intentional, more reality-based; and that’s healthy.”