Asking Home Prices Slowing, But Still Gaining in Most Markets

Asking Home Prices Slowing, But Still Gaining in Most MarketsAsking home prices in October increased 0.6 percent month-over-month, the second-slowest monthly gain in seven months, Trulia reports.
The slowdown in asking prices is largely due to expanding inventory, rising mortgage rates, and declining investor activity, the real estate site reports in its latest update.
“Asking prices could potentially slow further if consumer confidence suffers from the ongoing budget uncertainty and future shutdown and debt-default worries,” Trulia says.
Nonetheless, home prices agains are all still robust compared with historical norms. Asking prices jumped 11.7 percent year-over-year – the highest increase since the housing bubble burst.
Trulia also reports that rents across the nation rose 2.7 percent year-over-year in October.
Among the 25 largest rental markets, rents rose most in San Francisco, Portland, and Seattle. Rents fell slightly in Washington D.C. and Philadelphia.
Bay Area renters have it the toughest. San Francisco now has the sharpest year-over-year increase in rents and the highest median rent: $3,250 for a two-bedroom unit, edging out the New York metro area where the median rent for a similarly-sized unit is $3,150 per month.
On the affordability side of the spectrum, median rent for a two-bedroom unit is less than $1,000 in Phoenix, St. Louis, and Las Vegas.

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