Trulia Reports Strong Job Growth Boosting Asking Prices in San Jose, Orange County, San Francisco, a
Trulia Reports Strong Job Growth Boosting Asking Prices in San Jose, Orange County, San Francisco, and Phoenix
Asking Home Prices Soared 8.3 Percent Year-Over-Year Nationwide, While Rents Rose Only 2.4 Percent
SAN FRANCISCO--(BUSINESS WIRE)-- Trulia (NYS: TRLA) , a leading online marketplace for home buyers, sellers, renters, and real estate professionals, today released the latest findings from the Trulia Price Monitor and the Trulia Rent Monitor. These indices are 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 April 30, 2013.
Asking Home Prices Nationally Up 8.3 Percent Year-Over-Year
With the Spring house hunting season well underway, asking home prices rose 8.3 percent nationally year-over-year (Y-o-Y) in April. This time last year, asking prices fell 1.6 percent Y-o-Y. Seasonally adjusted, asking prices rose 1.3 percent month-over-month and 4.3 percent quarter-over-quarter. Regionally, asking prices were higher than one year ago in 95 of the 100 largest metros.
April 2013 Trulia Price Monitor Summary | ||||||
% change in | # of 100 largest | % change in asking | ||||
Month-over-month, | 1.3% | Not reported | 1.7% | |||
Quarter-over-quarter, | 4.3% | 96 | 4.6% | |||
Year-over-year | 8.3% | 95 | 9.3% | |||
Asking Prices Leap Highest Where Job Growth Is Booming
Strong job growth and the housing recovery go hand-in-hand. Nationally, job growth increased 1.5 percent Y-o-Y in March. In San Jose, Orange County, San Francisco, and Phoenix - where asking prices rose more than 18 percent Y-o-Y - job growth was well above the national average. In fact, only the Detroit suburb of Warren-Troy-Farmington Hills, MI was among the list of top 10 markets with the highest price gains without above average job growth.
Top 10 Metros Where Asking Prices Increased Most | ||||||
# | U.S. Metro | Y-o-Y% change | Y-o-Y% change in | |||
1 | 28.5% | 2.0% | ||||
2 | 26.3% | 2.2% | ||||
3 | 25.6% | 1.7% | ||||
4 | 23.3% | 2.3% | ||||
5 | 22.9% | 3.2% | ||||
6 | 19.0% | 2.0% | ||||
7 | 18.6% | 2.4% | ||||
8 | 18.1% | 3.4% | ||||
9 | 18.1% | 2.1% | ||||
10 | 18.0% | 0.3% | ||||
Among 100 largest metros. Job growth through March 2013, from BLS. | ||||||
Rents Fall Year-over-Year in San Francisco and Las Vegas Despite Rising Prices
Rents rose 2.4 percent Y-o-Y nationally, but rent growth has slowed. In 19 of the 25 largest rental markets, rent gains Y-o-Y was slower in April than in January. In some markets, rents and prices are moving in the opposite direction, or nearly so: the four metros with the slowest rent growth or even declines - San Francisco, Las Vegas, Sacramento, and Seattle - all had price gains of more than 15 percent Y-o-Y.
Metros Where Rents Fell or Remained Flat | ||||||
# | U.S. Metro | Y-o-Y% change | Y-o-Y% change in | |||
1 | -3.4% | 18.1% | ||||
2 | -1.4% | 28.5% | ||||
3 | 0.4% | 25.6% | ||||
4 | 0.4% | 15.5% | ||||
Among 25 largest rental markets. | ||||||
Pre-Approved Quotes
"Although some of the home-price growth is a bounce back from the housing bust, job growth is boosting housing demand and lifting home prices," said Jed Kolko, Trulia's Chief Economist. "Investors don't deserve all the thanks - or blame - for rising prices. Households are doing their part, too, as the economy recovers and more people go back to work and get on more solid financial footing. Local markets with strong job growth will see home prices continue to recover even after investors decide to cash out their gains and exit the market."
"Job growth helps the housing recovery by increasing people's spending power and confidence in making long-term investments," said Jed Kolko, Trulia's Chief Economist. "Young adults with jobs are much less likely to live with their parents than those without jobs. Furthermore, stable jobs will set this generation free to form their own households and start thinking about homeownership."
MULTIMEDIA
To read the full report, see here.
To download a graph of price changes from July 2011 to April 2013, see here.
To download a scatter plot graph illustrating the relationship between job growth and home prices, see here.
To download a list of the price and rent changes for the 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 Thursday, June 6, at 10 AM ET.
ABOUT TRULIA, INC.
Trulia (NYS: 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.
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