Trulia Classifies Housing Markets in San Francisco Bay Area, Seattle,
Denver, and Salt Lake City as “Booming”
Rents Gains Cool Down Nationally as More Multi-Unit Buildings Are Completed
SAN FRANCISCO -- February 5, 2013
Trulia(NYSE: TRLA) today released the latest findings from theTrulia Price
Monitorand theTrulia Rent Monitor,the earliest leading indicators available
of trends inhome 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 January 31, 2013.
Rising Asking Prices Signal Strong Price Recovery
Indicating the strength of the home price recovery, asking prices rose 0.3
percent quarter-over-quarter (Q-o-Q) in January without seasonal
adjustment—despite the fact that prices typically fall during the wintertime.
Seasonally adjusted, prices rose 2.2 percent Q-o-Q. Moreover, prices rose 0.9
percent month-over-month (M-o-M), the highest monthly gain since the price
recovery began. Year-over-year (Y-o-Y), prices rose 5.9 percent; excluding
foreclosures, prices rose 6.5 percent.
January 2013 Trulia Price Monitor Summary
# of 100 largest % change in asking
% change in metros with prices, excluding
asking prices asking- foreclosures
Month-over-month, 0.9% Not reported 1.2%
Quarter-over-quarter, 2.2% 79 2.9%
Year-over-year 5.9% 86 6.5%
Booming Housing Markets Have Both Price Gains and Healthy Fundamentals
Healthy housing markets are defined by strong job growth, low vacancy rates,
and low foreclosure inventory. In “booming” markets such as San Francisco and
Seattle, rising asking prices are supported by strong job growth and are
unthreatened by future foreclosures. However, investor-fueled price increases
in “rebounding” markets like Phoenix and Las Vegas are at risk from slow job
growth, high vacancies, or future foreclosures. At the other end of the
spectrum, healthy markets without dramatic price gains, such as Houston, will
continue to hum along after avoiding the worst of the housing bubble and bust.
Meanwhile, markets like Chicago continue to struggle without strong market
fundamentals or big price gains.
BOOMING *San Francisco
Big price increases and healthier *Denver
market fundamentals. *San Jose
*Salt Lake City
Stronger market fundamentals *Raleigh
without dramatic price gains. *Dallas
Big price increases, but weaker *Riverside-San Bernardino
market fundamentals. *Detroit
Neither strong market *Albuquerque
fundamentals nor big price gains.
New Construction Eases Rent Gains Nationally
With more newly-constructed multi-unit buildings coming to completion, rent
gains fell behind asking price increases at the national level for the first
time since the price recovery began last spring. In January, rents rose 4.1
percent Y-o-Y nationally, slowing down from 4.7 percent in July 2012.
Regionally, rent gains cooled the most in San Francisco, where rents rose only
2.4 percent versus 11.5 percent in July 2012. According to the Census,
construction activity in San Francisco has been well above normal for the last
year, and it’s nearly all in multi-unit buildings.
Where Rent Gains Slowed Down Most
% Change in % Change in Percentage
# U.S. Metro Rents, Y-o-Y, Rents, Y-o-Y, Point
Jan 2013 July 2012 Difference
1 San Francisco, CA 2.4% 11.5% -9.1%
2 Portland, OR-WA 4.7% 9.2% -4.4%
3 Seattle, WA 6.4% 10.8% -4.4%
4 Denver, CO 7.4% 10.3% -2.9%
5 San Diego, CA 2.0% 4.4% -2.4%
NOTE: Among largest 25 rental markets. All figures are rounded, and
differences (rightmost column) were calculated before rounding, so some
differences shown may not equal the difference of the rounded values.
*“In many local markets today, dramatic price gains can mask serious red
flags,” says Jed Kolko, Trulia’s Chief Economist. “Strong job growth, low
vacancy rate, and low foreclosure inventory–not huge price gains–are signs
of a healthy housing market. Without strong underlying market
fundamentals, price rebounds might be here today, but gone tomorrow.”
*“Rent gains are slowing down because of more supply, not less demand,”
explains Jed Kolko, Trulia’s Chief Economist. “Many of the multi-unit
buildings that have been under construction over the past two years are
now coming onto the market. Renters in San Francisco, Seattle, and Denver
are starting to get a touch of relief, even though rising prices might put
homeownership out of their reach.”
*To read the full report, seehere.
*To download the full list of price and rent changes for the largest metro
*To download a graph of price changes from January 2011 to January 2013,
*To download a scatter plot graph contrasting price trends with the
market's health for the 100 largest metros, see here.
To view the full methodology and 2013 release schedule, seehere. The next
release of the Trulia Price Monitor and the Trulia Rent Monitor will be
Tuesday, March 5, at 10 AM ET.
ABOUT TRULIA, INC.
Trulia(NYSE: TRLA) gives home buyers, sellers, owners, and renters the inside
scoopon properties, places, and real estateprofessionals. 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 thelocal community questions. Real estate professionalsuse Trulia to
connect with millions of transaction-ready buyers and sellers each month via
our hyper local advertising services, social recommendations, and
top-ratedmobile real estate apps. Trulia is headquartered in downtown San
Francisco. Trulia is a registered trademark of Trulia, Inc.
Daisy Kong, 415-400-7391
Press spacebar to pause and continue. Press esc to stop.