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Rent Increases Outpace Modest Home Price Rises, Reports Trulia

Tue Jul 3, 2012 10:00am EDT

By: Daisy Kong

SAN FRANCISCO, CA, Jul 03 (Marketwire) —

Trulia today released the latest findings from the Trulia Price Monitor

and the Trulia Rent Monitor, the earliest leading indicators available of

trends in home prices and rents. Based on the for-sale homes and rentals

listed on Trulia, 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 Rise in June, Fourth Solid Increase in Past Five Months

 

Asking prices on for-sale homes — which lead sales prices by

approximately two or more months — increased 0.3 percent in June month

over month (M-o-M), seasonally adjusted. With the exception of nearly

flat prices in May, prices rose in four of the past five months. Asking

prices in June rose nationally 0.8 percent quarter over quarter (Q-o-Q),

seasonally adjusted. Year-over-year (Y-o-Y) asking prices rose by 0.3

percent; excluding foreclosures, asking prices rose Y-o-Y by 1.7 percent.

Nationally, 44 out of the 100 largest metros had Y-o-Y price increases,

and 84 out of the 100 largest metros had Q-o-Q price increases,

seasonally adjusted.

 

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June 2012 Trulia Price Monitor Summary

—————————————————————————-

# of 100 largest   % change in asking

% change in asking  metros with asking-  prices, excluding

prices          price increases       foreclosures

—————————————————————————-

Month-over-

month,

seasonally

adjusted               0.3%            (not reported)           0.8%

—————————————————————————-

Quarter-over-

quarter,

seasonally

adjusted               0.8%                  84                 2.2%

—————————————————————————-

Year-over-year          0.3%                  44                 1.7%

—————————————————————————-

 

Despite Big Price Gains, Phoenix, Miami, and Detroit Face New

Foreclosure Wave

Asking prices rose Y-o-Y by 15 percent or more in

Phoenix and Miami. However, seven of the 10 metros with the largest

increase in asking prices also have a high share of homes in foreclosure,

including Phoenix, the Florida metros, and Detroit and its suburbs. These

coming 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.

 

—————————————————————————-

 

Metros with Largest Price Increases

—————————————————————————-

Y-o-Y % Change in Asking  Homes in Foreclosure, per

#  U.S. Metro              Prices, June 2012         1,000 Housing Units

—————————————————————————-

1  Phoenix, AZ                   18.9%                       25.5

—————————————————————————-

2  Miami, FL                     16.1%                       33.7

—————————————————————————-

3  Cape Coral-Fort

Myers, FL                      14.9%                       30.5

—————————————————————————-

4  West Palm Beach, FL      9.6%                       26.1

—————————————————————————-

5  Denver, CO                     7.2%                       11.9

—————————————————————————-

6  Orlando, FL                     6.8%                       29.3

—————————————————————————-

7  Warren-Troy-

Farmington Hills,

MI                                    6.5%                       17.5

—————————————————————————-

8  San Jose, CA                   6.2%                       10.0

—————————————————————————-

9  Detroit, MI                       5.2%                       21.2

—————————————————————————-

10 Pittsburgh, PA                 5.1%                       4.4

—————————————————————————-

 

Note: Among 100 largest metros. Foreclosure data provided by

RealtyTrac. National average is 10.2 homes in the foreclosure process per

1,000 housing units.

 

Rents Rise 5.4 Percent Nationally, Outpacing Price Increases

Despite

widespread national asking price rises, rent increases outpaced price

increases in 22 of the 25 largest rental markets. Nationally, rents were

5.4 percent higher in June than they were a year ago, and rents increased

Y-o-Y in 24 of the 25 largest rental markets — all except Las Vegas.

Furthermore, rent increases accelerated between March and June in most

rental markets, with rents in San Francisco rising 14.7 percent Y-o-Y in

June from 10.9 percent in March.

 

—————————————————————————-

 

Metros with Largest Rent Increases

—————————————————————————-

Y-o-Y % Change in Asking   Y-o-Y % Change in Asking

#  U.S. Metro               Rent, June 2012            Rent, March 2012

—————————————————————————-

1  San Francisco, CA             14.7%                      10.9%

—————————————————————————-

2  Oakland, CA                    11.2%                       7.0%

—————————————————————————-

3  Denver, CO                     10.9%                       9.4%

—————————————————————————-

4  Miami, FL                       10.5%                      11.2%

—————————————————————————-

5  Boston, MA                     10.3%                       8.6%

—————————————————————————-

 

PRE-APPROVED QUOTES

 

—  “We saw asking prices start to rise in February and predicted that

other home price indexes would report sales price increases this

summer for those homes — and they have,” said Jed Kolko, Trulia’s

Chief Economist. “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.”

 

—  “The huge price gains we’ve seen in Miami and Phoenix are not built to

last. These increases will shrink or reverse as the backlogged

foreclosures in these metros hit the market,” said Jed Kolko, Trulia’s

Chief Economist. “In contrast, 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. Their recent price

gains are less dramatic than Miami and Phoenix but are less at risk.

Slow and steady wins the housing recovery.”

 

MULTIMEDIA

 

—  To download the full list of price and rent changes for the largest

metro areas, see here.

—  To download a graph of price changes from November 2010 to June 2012,

see here.

 

METHODOLOGY

 

To view the full methodology and 2012 release schedule,

see here. The next release of the Trulia Price Monitor and the Trulia

Rent Monitor will be Tuesday, August 7, at 10AM ET.

 

ABOUT TRULIA, INC.

Trulia gives home buyers, sellers, owners and renters

the inside scoop on properties, places and real estate professionals.

Trulia has unique info on the areas people want to live that can’t be

found anywhere else: users can learn about agents, neighborhoods,

schools, crime and even ask the local community questions. Real estate

professionals use Trulia to connect with millions of transaction-ready

buyers and sellers each month via our hyper local advertising services,

social recommendations and top-rated mobile apps. Trulia is headquartered

in downtown San Francisco and is backed by Accel Partners and Sequoia

Capital. Trulia is a registered trademark of Trulia, Inc

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Seasoned chief executive and entrepreneur with proven track record. Mr. Zar brings more than twenty years experience in operations, evaluation, investment and management of real estate assets. Sean is responsible for new asset origination, evaluation, analysis and due diligence as well as overall executive direction. Mr. Zar also gained insight into capital markets as the founder and president of CBA Capital, Inc., a Newport Beach, CA based investment bank and venture capital company. He also was the founder and CEO of American Income Securities, an investment company with more than $50 million in client assets. He also managed a technology venture capital fund where he was responsible for equity and debt investments in a wide variety of companies. Mr. Zar sold his interest in American Income Securities in 1999. Mr. Zar has been an active real estate investor in Arizona as well as Colorado and Southern California. Mr. Zar is focused on discovering undervalued properties.
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