Trulia Reports Asking Prices Up 16.3 Percent Year-Over-Year in the Least Affordable Housing Markets

Trulia Reports Asking Prices Up 16.3 Percent Year-Over-Year in the Least Affordable Housing Markets

Prices Jump More Than 20 Percent in San Jose, Oakland and Orange County, Compared with 9.5 Percent for U.S. Overall

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 May 31, 2013.


Asking Prices Up in 98 of 100 Largest Metros

In May, asking prices continued to increase steadily across the country, rising in 98 of the largest 100 metros. Nationally, prices are up 9.5 percent year-over-year (Y-o-Y). Seasonally adjusted, prices increased 4.0 percent quarter-over-quarter and 1.1 percent month-over-month.

May 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
1.1%Not reported1.4%
Quarter-over-quarter,
seasonally adjusted
4.0%944.5%
Year-over-year9.5%9810.5%
 

Home Affordability Shrinking In High Cost California Markets Due to Home Price Spike

Eight out of the 10 least affordable markets, with seven in California, are all showing double digit asking price increases making home affordability even tougher for would-be buyers. Orange County, Oakland, and San Jose all had price increases of more than 20 percent, making these already expensive markets even less affordable. Prices are up 16.3 percent, on average, in these 10 least affordable housing markets.

Price Changes in the 10 Least Affordable Housing Markets *
# U.S. Metro 

% of monthly
average wage
needed to pay
mortgage*

 

Y-o-Y%
change in
prices

1

Honolulu, HI

74%12.8%
2

San Francisco, CA

55%19.6%
3

Orange County, CA

44%21.2%
4

Ventura County, CA

41%15.4%
5

Los Angeles, CA

41%17.4%
6

San Diego, CA

37%16.8%
7

Oakland, CA

37%31.2%
8

Long Island, NY

35%1.1%
9

New York, NY-NJ

35%4.6%
10

San Jose, CA

33%23.2%

Among 100 largest metros. Affordability is measured as the mortgage payment (3.8% 30-year fixed) on a 1,800-square-foot home at the local median asking price per foot divided by the local average monthly wage for a worker.

 

Rental Prices Struggle To Rise, Even In Least Affordable California Markets

Nationally, rents are up 2.3 percent Y-o-Y, rising slower than asking prices in 23 of the 25 largest rental markets. Out of the 10 least affordable rental markets, five show increases below the national average, with California markets moving especially slow - San Francisco rents up 0.2 percent, Los Angeles 1.8 percent and Oakland 1.3 percent. Among these least affordable rental markets, Miami and Boston had the largest rent increases.

Rent Changes and Rental Affordability in 10 Least Affordable Rental Markets

# U.S. Metro 

% of monthly
average wage
needed to pay
rent*

 

Y-o-Y % change in
rents

1

New York, NY-NJ

58%3.7%
2

Miami, FL

57%6.4%
3

Los Angeles, CA

46%1.8%
4

San Francisco, CA

46%0.2%
5

Boston, MA

44%5.5%
6

San Diego, CA

41%5.1%
7

Orange County, CA

41%3.4%
8

Oakland, CA

41%1.3%
9

Riverside-San Bernardino, CA

40%1.1%
10

Washington, DC-VA-MD-WV

39%2.0%

Among 25 largest rental markets. Affordability is measured as the local median rent for a 2 bedroom unit divided by the local average monthly wage for a worker.

 

PRE-APPROVED QUOTES:

  • "Home prices are rising fastest in the local markets that were least affordable to begin with," said Jed Kolko, Trulia's Chief Economist. "As the gap between the most and least affordable markets widens, more people in expensive markets like California will look to relocate to cheaper markets like Texas when the time comes to buy."
  • "If you own in pricey markets like Honolulu or San Francisco, or rent in expensive places like New York or Miami, you could be spending more than half your earnings on housing," said Jed Kolko, Trulia's Chief Economist. "Even spending one-third of your pre-tax earnings on housing can stretch the family budget. But to own in more affordable markets like Detroit, Houston, or Atlanta, you'll spend much less than one-third of your earnings on housing - leaving a lot more money left over to spend on other things or build up savings."

MULTIMEDIA

  • To read the full report, see here.
  • To see a graph of price changes from July 2011 to May 2013, 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 Wednesday, July 3, 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.



Trulia
Vanessa Villatoro, 415-748-3808
pr@trulia.com

KEYWORDS:   United States  North America  California

INDUSTRY KEYWORDS:

The article Trulia Reports Asking Prices Up 16.3 Percent Year-Over-Year in the Least Affordable Housing Markets originally appeared on Fool.com.

Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Read Full Story

Can't get enough business news?

Sign up for Finance Report by AOL and get everything from retailer news to the latest IPOs delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.