Trulia's Asking Home Price Index Increased by 2.3% in August, the Biggest Increase Since the Recession
From Trulia’s press release today:
Trulia today released the latest findings from the Trulia Price Monitor, the earliest leading indicator available of trends in home prices. Based on the for-sale homes listed on Trulia, this monitor takes into account changes in the mix of listed homes and reflect trends in prices for similar homes in similar neighborhoods through August 31, 2012. (Note: The Price Monitor leads the commonly watched sales price indexes by several months, see details here.)
Asking prices on for-sale homes–which lead sales prices by approximately two or more months – increased 2.3% in August year over year (YoY) and rose in 68 of the 100 largest metros. Excluding foreclosures, prices rose 3.8% YoY. These are the largest YoY gains since the recession. Meanwhile, asking prices rose nationally 1.8% quarter over quarter, seasonally adjusted. Month-over-month asking prices rose by 0.8%, the seventh consecutive month of increases (see chart above).
Jed Kolko, Trulia’s Chief Economist commented, “Asking prices rose 2.3% year over year in August, hitting two housing recovery milestones. First, asking prices rose faster than at any time since the recession. Second, asking prices excluding foreclosures are now rising faster than wages, putting an end to many years of affordability gains. In addition, price gains are catching up with slowing rent increases, which will tip some renters in favor of staying put in their rentals rather than buying a home."
MP: More evidence today from Trulia of rising home prices and a housing recovery. And because the Trulia Price Monitor is a leading indicator of future home sales prices, we can expect the price gains and housing recovery to continue into the fall season.