Trulia: Home prices rise, and rents rise more

The asking prices for rentals rose 5.1% nationwide in the past year, even in areas where home prices are falling. Asking prices for sales rose 2.9%.

By Teresa at MSN Real Estate Nov 5, 2012 2:56PM

Model house and money on scale. © SuperStockThe asking prices for homes are up 2.9% over last year, but rents are rising faster, even in cities where sale prices are still falling.

 

The latest analysis by the real-estate portal Trulia found that asking prices of homes for sale in October were 0.7% higher than in September. Year over year, 69 of the 100 metro areas tracked posted an increase in asking prices.

 

Rents were up 5.1% over last October, showing double-digit increases in three cities and declines in only a handful of the nation’s 100 largest metro areas.

 

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"Continued widespread price increases are good for homeowners but not for home-seekers," Jed Kolko, Trulia’s chief economist, said in a news release. "In markets like Denver, San Francisco and Oakland, where prices and rents are both rising, higher prices mean higher down payments, but rising rents make it harder to save enough."

Among the 25 largest markets, the cities showing the biggest increase in rents year over year were Houston, 16.5%; Miami, 10%; Oakland, Calif., 10%; Denver, 9.4%; and Seattle, 8.8%. They were followed by Philadelphia, Minneapolis-St. Paul, Chicago, New York and San Francisco.

The cities showing the greatest decline in rents, among all 100 metro areas, were Richmond, Va., 3.2%; Las Vegas, 1.8%; and Little Rock, Ark., 1.3%.

These are the cities where asking prices increased the most between October 2011 and October 2012:

  • Phoenix: 24.9%
  • Cape Coral-Fort Myers, Fla.: 15.7%
  • San Jose, Calif.: 12.7%
  • Warren-Troy-Farmington Hills, Mich.: 11.8%
  • West Palm Beach, Fla.: 11.3%
  • Las Vegas: 10.9%
  • Denver: 10.1%
  • Detroit: 9.8%
  • Oakland, Calif.: 8.8%
  • San Francisco: 8.7%

Most of the cities showing the greatest decrease were in the Midwest and Northeast, where foreclosures continued to drag down prices. For October, the cities showing the great decrease in prices were:

  • Chicago: 5.3%
  • Camden, N.J.: 4.4%
  • Gary, Ind.: 3.5%
  • Edison-New Brunswick, N.J.: 3.5%
  • Lake County-Kenosha County, Ill.-Wis.: 3.5%
  • Greenville, S.C.: 3.3%
  • New Haven, Conn.: 3.3%
  • Allentown, Pa.-N.J.: 3%
  • Philadelphia: 2.9%
  • Albuquerque, N.M.: 2.2%
 
12Comments
Nov 10, 2012 10:06PM
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Neither one of these parties care about the voters. They just care about whose in charge of that great big vat of public money. Whos ever in charge gets their nose in the deepest. Time for us to kick out those who can't work together and vote for those who work for us.

Nov 10, 2012 4:53PM
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I just lost my job and am worried about my house.  Fortunately, I have three extra bedrooms am renting out - I just rented two rooms and have a third room almost ready for rent.  It's amazing the demand for a clean room in a nice house at a good rate.  One of the reasons I bought this house is because I wanted to be able to rent rooms if I lost my job.  Now it's paying off.
Nov 10, 2012 3:33PM
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I persoally believe that to much emphasis is being placed on foreign aid illegal immigrants and also which one to pounce on next.  Not enough is being placed on the well being of the american public and what is best for them.  As soon as you force those you elected into action, you will not get anywhere util you unite and stand up against all politicians who are not doing the job you elected them to do.  If divided you will fall like  Rome.
Nov 10, 2012 12:48PM
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You haven't' seen anything yet.  Home prices will be very expensive when the dollar goes down to worthless. 

 The Voters can thank each other! 

 Welcome to higher taxes, higher health care, less freedom, and the job creators will all be on vacation.

Nov 10, 2012 9:29AM
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Obama hasn't done anything for housing in 4 years, why think he will do something now? Next he will put all the illegals into the foreclosures for free so they will all vote for Dems in 2016.
Nov 10, 2012 7:34AM
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With the outcome of the election, there will be consequences.  More people are probably going to lose their jobs, and then their homes.  If you have rental property, it will be good for business (full occupancy for landlords). 
Nov 10, 2012 5:36AM
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even though the asking prices have risen, the value of the homes have not. thisis good for the buyer because buyers usually try not to pay over the value of the home. 

 

Nov 10, 2012 3:44AM
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Wonder just how much more do they think people can take? There has to be a stopping point somewhere sometime. Looks like the illegals are doing very well.
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