Tag Archives: Trulia

While the housing market is showing some signs of promise, a few major indicators continue to lag, according to the latest Trulia Housing Barometer.

Online marketplace Trulia released the latest findings from its Price and Rent Monitor reports, showing a shift in market trends as the housing market prepares for 2014. While price increases for the last few months have slowed down at the national level, numbers suggest the greatest drag is coming from the same markets that only a few months ago were giving the biggest boost to the market. "Price gains are cooling in 2013's hottest markets ... but heating up in markets that haven't been in the limelight," said Trulia chief economist Jed Kolko.

Asking prices rose 12.5 percent year-over-year in October blue metros and 11.1 percent in red metros, according to the Trulia Price Monitor.

The national homeownership rate stands at 65.3 percent as of the end of the third quarter, up 0.3 percentage points from the previous quarter, but down 0.2 percentage points from last year, according to the Census Bureau. While the quarterly rise has some analysts expressing hope that housing has reached a turning point, others focused more on the slow pace of growth as a sign that young adults still aren't in a position to create their own households.

A recent Trulia study suggests those looking to live comfortably in their homes should consider moving to Ohio, Indiana, South Carolina, or Alabama, where incomes are lower, but housing costs are even lower.

Trulia is the latest company to report a monthly slowdown in home prices--and trends indicate yearly gains may soon cool as well. "Asking home prices give us the first look at where home sale prices are headed, and they point to a slowdown," said Trulia chief economist Jed Kolko. "After rising rapidly in the first half of 2013, asking prices in two thirds of the largest metros are cooling. In fact, asking prices are falling--not just rising more slowly--in 11 of the 100 largest metros, the most markets to see prices slip in six months."

Despite rising interest rates, owning a home is still significantly cheaper than renting, according to Trulia's Summer 2013 Rent vs. Buy Report.

In a blog for the company, Trulia chief economist Jed Kolko posits his own theory for why new construction is moving so slowly.

While price gains may paint a picture of a recovery well on its way, construction figures aren't as encouraging, according to an analysis from Trulia. While prices are up 11 percent year-over-year in August, according to Trulia, which monitors list prices, construction activity is lagging. Additionally, when it comes to price gains and increases in construction, markets tend to be experiencing one or the other, with markets reporting price growth seeing meager construction.

Trulia's Housing Barometer dialed up to 64 percent "back to normal" in July, the company reported.