RENTS RISING FASTER THAN PRICE, BOTH UP

Asking prices on for-sale homes – which lead sales prices by approximately two or more months -- increased 0.3 percent in June on a month-over-month basis, according to Trulia’s Price Monitor. With the exception of nearly flat prices in May, prices rose in four of the past five months. 


Asking prices in June rose 0.8 percent nationwide on a quarterly basis. Annually, asking prices rose by 0.3 percent; excluding foreclosures, asking prices rose 1.7 percent. Nationally, 44 out of the 100 largest metros had Y-o-Y price increases, and 84 out of the 100 largest metros had Q-o-Q price increases, seasonally adjusted.

Despite widespread national asking price rises, rent increases outpaced price increases in 22 of the 25 largest rental markets, according to the Trulia Rent Monitor. Nationally, rents were 5.4-percent higher in June than they were a year ago, and rents increased year-over-year in 24 of the 25 largest rental markets – all  except Las Vegas. 


Furthermore, rent increases accelerated between March and June in most rental markets, with rents in San Francisco rising 14.7 percent year-over-year in June from 10.9 percent in March.


With San Francisco leading the recovery, many Bay Area homeowners who sell their homes could very well move to Nevada County, as they have in the past. This effect will bring more people as well as much needed jobs.


“California home sales were strong in May, continuing the gradual recovery of the California housing market,” said C.A.R. President LeFrancis Arnold.  “First-time buyers are recognizing that the housing market has hit bottom and are now seeing a sense of urgency to take advantage of ultra-low interest rates and advantageous home prices.  Additionally, trade-up buyers are returning to the market after sitting it out for the past few years to get in on favorable home prices.”

Scott Hopper - Realtor, 530-477-2277

"If you enjoy reading my blog, please keep me in mind when you or a friend needs a real estate professional"