According to the Trulia Price Monitor, home prices are improving at an accelerated pace as 2012 wraps up, and rents are picking up with dramatic rises in some of America’s largest cities.
Trulia Price Monitor shows housing improving
According to the December 2012 Trulia Price Monitor and Trulia Rent Monitor released today, asking prices for homes increased 5.1 percent for the year in December, while rents rose 5.2 percent in the same period. Trulia points out that these asking price numbers make up the 4.3 percent decline in prices during 2011, calling the numbers “a huge turnaround.”
In the spirit of turnarounds, the Monitor points to Las Vegas and Seattle as the top turnaround markets, both experiencing double digit price increases in 2012, after double digit price declines the previous year. The Trulia Price Monitor also reveals that overall, 82 of the 100 largest metros had rising prices in 2012, compared to only 12 in 2011.
“Prices ended 2012 with accelerating gains,” notes Trulia. “The fourth quarter was the strongest of the year, seasonally adjusted.” From the third quarter to the fourth quarter, prices improved 2.3 percent, compared with a 1.4 percent improvement in the third quarter, a 0.4 percent improvement in the second quarter, and a 0.8 percent improvement in the first quarter, marking accelerating improvement as 2012 progressed.
Rental market also improving
According to the Trulia Rent Monitor, rents rose 5.2 percent in December compared to December 2011, with rents rising steadily at around 5.0 percent year-over-year throughout most of 2012.
In 17 of the 25 largest rental markets, prices are rising faster than rents, while rents are outpacing prices significantly in Houston, Chicago, Philadelphia, and Baltimore.
Trulia Price Monitor reveals hope for 2013
Dr. Jed Kolko, Trulia’s Chief Economist said, “The 2012 price turnaround was strongest in the West and Southwest, where steady job growth and vanishing inventories lifted home prices by more than 10 percent in many markets.”
“The housing market enters 2013 with a running start,” Dr. Kolko added. “Price gains picked up steam in 2012, starting with modest increases early in the year and accelerating in the third and fourth quarter. In 2013, rising prices will encourage more new construction and some homeowners to sell, which will help alleviate the current inventory shortage.”
Trulia Price Monitor, Trulia Rent Monitor charts: