Home prices make gains in June
June asking prices for homes sold were up by 0.3% month over month in June 2012, the latest month of Trulia national data. Aside from May, when asking prices increased by so little that they were essentially unchanged, asking prices have moved up every month since February.
Now, even the year-over-year price change is positive. Foreclosures hold back price gains. When we exclude foreclosed homes, national prices are up 1.7% year-over-year. At the local level, in addition to the typical springtime boost, prices have risen quarter-over-quarter in 84 of the 100 largest metros, seasonally adjusted.
However, rents are rising faster than home prices
Although home prices have increased, rents have risen faster. In the Seattle area, June rents increased 5.4% year over year. And it’s not only in Seattle. In 22 of the 25 largest national rental markets, rents are outpacing prices. This means that buying a home is becoming an even better deal relative to renting – that is, for those who can qualify for a mortgage and put up the down payment.
Are there any signs of rents slowing down?
According to Trulia, not really. In most markets, the year-over-year increase in June was higher than in March. In San Francisco, for instance, rents were up 14.7% year over year in June compared with 10.9% in March. Oakland, Portland, Philadelphia and Houston have also seen rent increases accelerate since March.
Check out the charts below to see for yourself.
Metros with Largest Rent Increases
|#||U.S. Metro||Y-o-Y % Change in Asking Rent, June 2012||Y-o-Y % Change in Asking Rent, March 2012|
|1||San Francisco, CA||14.7%||10.9%|
|10||New York, NY-NJ||5.9%||5.8%|