Asking Home Prices Show Impressive Gain in June, Rents Pick Up

Asking home prices took off in June, soaring 10.7 percent year-over-year, Trulia reported Wednesday. Month-over-month, asking prices inched up by 1.5 percent and rose 4.1 percent on a quarterly basis. 

Rents rose at a slower pace of 2.8 percent year-over-year, though it was still the biggest increase since January. Trulia also tracked the 100 largest metro areas and revealed 99 markets experienced an increase in asking prices over the last year.

According to Trulia’s chief economist Jed Kolko, the increase in home prices and mortgage rates has added a significant cost to homeownership.

“In the past year, buying a home has become at least 20 percent more expensive,” said Kolko. “For young first-time homebuyers who don’t remember life during and before the bubble, these rising costs are a rude awakening.”

Rents rose at a slower pace of 2.8 percent year-over-year, though it was still the biggest increase since January.

Though, the scenario was reversed in Las Vegas; Oakland, California; and Sacramento, where asking prices shot up by at least 30 percent while rents saw a slight decrease over the last year.

Source: DS News