Metro Home Prices Inch Up in June
Home prices in June increased nationally by an average of 0.3 percent across the 100 largest metropolitan areas, according to a new report. The asking price index also grew by 3.3 percent year-over-year in the second quarter, increasing in 84 out of 100 metropolitan areas.
Home prices inched up in June after a flat report in May, according to real estate web service Trulia.com, as average prices in the 100 largest metropolitan areas increased 0.3 percent both month-to-month and year-over-year. Rental costs in those areas also increased 5.4 percent year-over-year, outpacing the national average.
''Since February, asking prices showed solid gains in four out of five months, including in June,'' said Jed Kolko, Trulia's chief economist. ''I expect to see the sales price indexes show further increases in the months to come.''
The metros with the largest year-over-year asking price increase in June are:
Of the 25 largest rental markets in the report, only Las Vegas did not report a year-over-year increase.
Kolko said some of the metros with rising prices are ''at-risk'' areas, as high numbers of foreclosed homes have not yet reached the market and will inevitably drive prices back down.
''The huge price gains we've seen in Miami and Phoenix are not built to last,'' said Kolko. ''These increases will shrink or reverse as the backlogged foreclosures in these metros hit the market.''
Gains in other areas on the list have come with a lower share of distressed housing, which Kolko calls “in the clear'' markets that should hold their gains. These markets also have stronger job growth and will show construction gains more quickly than ''at-risk'' markets.
''Denver, San Jose and Austin, which were spared the worst of the housing crisis, have strong price growth and strong job growth without a foreclosure overhang,'' Kolko said. ''Their recent price gains are less dramatic than Miami and Phoenix but are less at risk. Slow and steady wins the housing recovery.''