Report: Asking Prices Slip for First Time Since November 2012
By: Esther Cho
For the first time since November 2012, asking home prices decreased month-over-month, slipping 0.3 percent from June to July, Trulia reported.
“If you were worried about a housing bubble, July’s asking-price slowdown will probably be the best news you’ve heard this year,” said Jed Kolko, Trulia’s chief economist.
Factors such as rising mortgage rates, growing inventory, and declining investor demand led to the dip in asking prices, according to Trulia.
While monthly changes can be volatile, Trulia explained the quarter-over-quarter change in asking prices confirms
the slowdown, with July asking prices improving just 3.3 percent over the last quarter compared to the peak of 4.2 percent in April.
Over the last year, asking prices were still strong, rising 11 percent, though Trulia noted the change won’t be as apparent since the annual average is based on a longer time period.
At the same time, 98 out of 100 metros saw prices appreciate compared to a year ago, but on a quarterly basis, prices declined in 64 metros.
“The biggest price slowdowns have come to some of the hottest local markets,” added Kolko. “California and Nevada remain the Wild West for asking home prices, with some of the sharpest drops during the bust, strongest rebounds over the past year, and now biggest slowdowns in the past quarter.”
Las Vegas saw asking prices slip 5.2 percent quarter-over-quarter, while three California metros—Oakland, San Francisco, and Sacramento—experienced decreases between 3.3 and 3.6 percent.
After tracking rent for July, Trulia reported an increase of 3.9 percent year-over-year. Even though asking prices weakened, growth was still much stronger compared to rents. In the 25 largest rental markets, asking prices actually outpaced gains in rent, a first since Trulia started tracking rent trends in March 2011.
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