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REALTOR®: Rents slow, but asking home prices in top metros continue to climb

Wednesday, May 8, 2013

Asking prices are climbing nationwide, especially in Silicon Valley. Rent increases have slowed and actually declined in some markets in April, according to a real estate website for home buyers, sellers, renters, and real estate professionals.

Trulia.com reports asking home prices in April were up 8.3 percent year-over-year nationally and rents rose only 2.4 percent. These prices were higher than one year ago in 95 of the 100 largest metros. This time last year, year-over-year asking prices fell 1.6 percent.

The Trulia report indicates asking prices jumped highest where job growth is booming. That seemed most evident in San Jose, Orange County, San Francisco and Phoenix, where job growth was well above the national average of 1.5 percent. In these metros year-over-year asking prices rose more than 18 percent.

Asking prices increased most in the following 10 metros: Las Vegas by 28.5 percent; Oakland, 26.3 percent; Sacramento, 25.6 percent, Phoenix, 23.3 percent, San Jose, 22.9 percent; Bakersfield, 19 percent; Orange County, 18.6 percent; San Francisco, 18.1 percent; Riverside-San Bernardino, 18.1 percent; and Warren-Troy-Farmington Hills, MI, 18 percent.

Year-over-year rent gains were slower in April than in January in 19 of the 25 largest rental markets. According to Trulia's Rent Monitor, these metro areas experienced year-over-year price gains of more than 15 percent. Four metros with the slowest rent growth or even declines were San Francisco, Las Vegas, Sacramento and Seattle. Despite their rising home prices, year-over-year rents fell 3.5 percent in San Francisco and were down 1.4 percent in Las Vegas. Year-over-year rents in April also declined 4.8 percent in the San Jose metro area, despite the area's year-over-year asking price gain of 22.9 percent.

Information from MLSListings Inc., the multiple listing service provider of the Silicon Valley Association of REALTORS®, shows the median price in Santa Clara and San Mateo counties are continuing their upward trend. April 2013 single-family home sales median price in Santa Clara County is $797,500, up 22 percent from the April 2012 median of $621,000. In addition, median prices in Cupertino, Los Altos, Los Gatos, Monte Sereno, Mountain View, Palo Alto, Saratoga and Sunnyvale have increased over the past five years. San Mateo County's April median sales price is $922,500, up 23 percent from April 2012's median of $710,000.

"We are seeing a housing recovery in Silicon Valley. Home prices are being boosted by strong job growth and consumers appear more positive about the future. Job growth and still very low interest rates are fueling demand," said SILVAR president Carolyn Miller.

The steep demand for homes continues to result in multiple offers in many areas. "Because of the shortage of inventory and fierce competition for homes, buyers can get caught up in the frenzy of the moment and overextend themselves when putting in an offer. Always consult your REALTOR® who can guide you to making the decision that is best for you and your future," cautioned Miller.


The Silicon Valley Association of REALTORS® (SILVAR) is a professional trade organization representing over 4,000 REALTORS® and Affiliate members engaged in the real estate business on the Peninsula and in the South Bay. SILVAR promotes the highest ethical standards of real estate practice, serves as an advocate for homeownership and homeowners, and represents the interests of property owners in Silicon Valley.

The term "REALTOR®" is a registered collective membership mark which identifies a real estate professional who is a member of the National Association of REALTORS® and who subscribes to its strict Code of Ethics.

Variations of this article have appeared in local area newspapers.

For further information, please contact Rose Meily at SILVAR Public Affairs, email , or phone (408) 200-0109.

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