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
# of 100 largest
% change in asking
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 *
% of monthly
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
% of monthly
Y-o-Y % change in
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.
"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."
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.
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.
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Vanessa Villatoro, 415-748-3808
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The article Trulia Reports Asking Prices Up 16.3 Percent Year-Over-Year in the Least Affordable Housing Markets originally appeared on Fool.com.