Rent Increases Outpace Asking Home Prices: Trulia

Despite widespread jumps in asking prices on homes for sale in June, rent increases outpaced price moves in 22 of the 25 largest rental markets, according to Trulia.
Rents nationwide were 5.4 percent higher in June than they were a year ago, and rents increased year-over-year in 24 of the 25 largest rental markets – except Las Vegas.
The real estate site also found that rent increases accelerated between March and June in most rental markets, with rents in San Francisco surging 14.7 percent year-over-year in June, from 10.9 percent in March.
Asking prices on for-sale U.S. homes increased 0.3 percent in June month-over-month on a seasonally adjusted basis, marking the fourth time out of the past five months that prices have risen.
Asking prices normally lead sales prices by approximately two or more months, Trulia said.
“Since February, asking prices showed solid gains in four out of five months, including in June, so I expect to see the sales-price indexes show further increases in the months to come,” said Jed Kolko, Trulia’s Chief Economist.
Asking prices increased year-over-year by 15 percent or more in Phoenix and Miami.
However, seven of the 10 cities with the largest increase in asking prices also have a high share of homes in foreclosure, including Phoenix, Florida metro areas, and Detroit and its suburbs.
These pending foreclosures threaten to reduce or reverse recent price gains in those markets. In contrast, Denver, San Jose, Pittsburgh, Little Rock, Austin and Colorado Springs all had price gains of more than 4 percent, with a moderate or low share of homes in foreclosure.

Leave a Reply

Your email address will not be published. Required fields are marked *