January 2013 Trulia Price Monitor Summary
% change in
asking prices
# of 100 largest
metros with asking-
price increases
% change in asking
prices, excluding
foreclosures
Month-over-month,
seasonally adjusted
0.9%
Not reported
1.2%
Quarter-over-quarter,
seasonally adjusted
2.2%
79
2.9%
Year-over-year
5.9%
86
6.5%
Booming Housing Markets Have Both Price Gains and Healthy Fundamentals
Healthy housing markets are defined by strong job growth, low vacancy rates, and low foreclosure inventory. In “booming” markets such as San Francisco and Seattle, rising asking prices are supported by strong job growth and are unthreatened by future foreclosures. However, investor-fueled price increases in “rebounding” markets like Phoenix and Las Vegas are at risk from slow job growth, high vacancies, or future foreclosures. At the other end of the spectrum, healthy markets without dramatic price gains, such as Houston, will continue to hum along after avoiding the worst of the housing bubble and bust. Meanwhile, markets like Chicago continue to struggle without strong market fundamentals or big price gains.
BOOMING
Big price increases and healthier
market
fundamentals.
HUMMING
Stronger market fundamentals
without dramatic price
gains.
REBOUNDING
Big price increases, but weaker
market fundamentals.
STRUGGLING
Neither strong market
fundamentals nor big price
gains.
New Construction Eases Rent Gains Nationally
With more newly-constructed multi-unit buildings coming to completion, rent gains fell behind asking price increases at the national level for the first time since the price recovery began last spring. In January, rents rose 4.1 percent Y-o-Y nationally, slowing down from 4.7 percent in July 2012. Regionally, rent gains cooled the most in San Francisco, where rents rose only 2.4 percent versus 11.5 percent in July 2012. According to the Census, construction activity in San Francisco has been well above normal for the last year, and it’s nearly all in multi-unit buildings.
Where Rent Gains Slowed Down Most#
U.S. Metro
% Change in
Rents, Y-o-Y,
Jan 2013
% Change in
Rents, Y-o-Y,
July 2012
Percentage
Point
Difference
1
2.4%
11.5%
-9.1%
2
4.7%
9.2%
-4.4%
3
6.4%
10.8%
-4.4%
4
7.4%
10.3%
-2.9%
5
2.0%
4.4%
-2.4%
PRE-APPROVED QUOTES
-
“In many local markets today, dramatic price gains can mask serious
red flags,” says Jed Kolko, Trulia’s Chief Economist. “Strong job
growth, low vacancy rate, and low foreclosure inventory–not huge price
gains–are signs of a healthy housing market. Without strong underlying
market fundamentals, price rebounds might be here today, but gone
tomorrow.” -
“Rent gains are slowing down because of more supply, not less demand,”
explains Jed Kolko, Trulia’s Chief Economist. “Many of the multi-unit
buildings that have been under construction over the past two years
are now coming onto the market. Renters in San Francisco, Seattle, and
Denver are starting to get a touch of relief, even though rising
prices might put homeownership out of their reach.”
MULTIMEDIA
- To read the full report, see here.
-
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 January 2011 to January
2013, see here. -
To download a scatter plot graph contrasting price trends with the
market’s health for the 100 largest metros, see here.
METHODOLOGY
To view the full methodology and 2013 release schedule, see here. The next release of the Trulia Price Monitor and the Trulia Rent Monitor will be Tuesday, March 5, at 10 AM ET.
ABOUT TRULIA, INC.
Trulia (NYSE: TRLA) 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, commute times, 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 real estate apps. Trulia is headquartered in downtown San Francisco. Trulia is a registered trademark of Trulia, Inc.
Article source: http://www.fortmilltimes.com/2013/02/05/2478046/trulia-classifies-housing-markets.html