Friday, October 5, 2012

National Home Prices On Track to Rise Almost 4% in 2012 – Ending Years of Price Declines

In September, asking prices rose 0.5% month over month, and 2.5% year over year. Prices have been stable or rising throughout 2012, and if the year-to-date price trend continues, asking prices will be up almost 4% in 2012 – ending several years of price declines. Nearly three-quarters of large metros – 74 out of 100 – had year-over-year price increases, and even more – 86 out of 100 — had quarter-over-quarter increases, seasonally adjusted.

Home Prices Increasing

Phoenix Still Sets Pace for Home Price Rebounds:
Asking prices in Phoenix rose 23.8% year over year in September, making Phoenix by far the biggest price-gainer in the country. What do the 10 metros with the largest price increases have in common? Truth is: not much! Phoenix, Cape Coral – Fort Myers, West Palm Beach and Orlando all had post-bubble price declines of half or more, so these year-on-year increases are a bounceback. In contrast, the price gains in San Jose and Denver are thanks to strong job growth. Prices in Oakland and San Jose are getting an additional lift from the decline in inventory and vacancies in those markets because tighter supply pushes up prices.

Rents Up 4.8% Year over Year, Led by Houston and Miami
In September, rents rose nationally 4.8% year over year. Among the largest 25 rental markets, rents rose the most in Houston and Miami, where they climbed more than 10% year over year in September. Strong job growth has pushed up rental demand in Houston. Rent increases have cooled the most in San Francisco, from 14.5% in June down to 7.2% in September – which is still plenty high by national standards – but brings much-needed relief to renters in the SF Bay Area.

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