Real estate information service Trulia this week released the latest findings from its price and rent monitors that show 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 solid increase in the past five months nationwide.
Trulia's price and rent monitors are the earliest leading indicators available of trends in home prices and rents. Based on the for-sale homes and rentals listed on the real estate website, 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 June 30, 2012.
Asking prices on for-sale homes were up nationally by 0.3 percent in June month-over-month and rose nationally 0.8 percent quarter-over-quarter. Additionally, year-over-year asking prices rose by 0.3 percent. With the exception of nearly flat prices in May, prices rose in four of the past five months. Nationally, 44 out of the 100 largest metros had year-over-year price increases, and 84 out of the 100 largest metros had quarter-over-quarter price increases.
Trulia's chief economist Jed Kolko noted, "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."
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 by as much as 14.7 percent year-over-year in June from 10.9 percent in March.
Rents in San Jose in June were up 6 percent from June of last year, while asking price was up 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. shows in the month of May, inventory of single-family homes was down 37 percent from May last year, while inventory of condos/townhouse was down 45 percent.
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.
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