Trulia: Asking Prices Moving Up More Than Ever

• October 4th 2012

by Shilpi Paul

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Data released today reveals that asking prices in the DC area and around the country are moving up more than ever, with 2012 on track to be the first year of rising home prices since 2006.

In September, asking prices rose by 5.1 percent year-over-year in the DC area and 2.5 percent nationwide, according to Trulia’s latest Price and Rent Monitors, which were released this morning. (If you exclude foreclosures, asking prices year-over-year nationally increased 3.5 percent.) At this rate, believes Trulia, asking prices will be up 4 percent by the end of the year.

”As asking prices continue to climb, 2012 will almost surely be the first year of rising home prices since 2006,” said Jed Kolko, Trulia’s Chief Economist. “Right now, prices are recovering across the country, with few local markets left behind. While some of these increases are a bounceback from the huge price declines during the recession, price gains are strongest where job growth has boosted housing demand and where declining inventories lead to tighter supply.”

Phoenix leads the pack, with an astounding 23.8 percent year-over-year gain. Asking prices in cities like San Jose and Denver also rose significantly (10.4 percent and 8.7 percent, respectively) as a result of strong job growth.

While prices are rising, Trulia’s Rent Monitor found the rate of acceleration for rents is slowing down. In DC, asking rents were up 3.4 percent year-over-year, down from a 3.7 percent increase in August and a 3.9 percent increase in July. Nationwide, rents rose 4.8 percent annually, still outpacing the housing price rise. However, as housing prices continue to rise, asking rents may decelerate further.

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A full explanation of Trulia’s methodology can be found here, but in short, the Price and Rent Monitors compare current asking prices and asking rents year-over-year and quarter-over-quarter, adjusting for seasonal swings.

This article originally published at http://dc.urbanturf.production.logicbrush.com/articles/blog/trulia_asking_prices_moving_up_more_than_ever/6114.