Asking Prices Fall amid Rising Mortgage Rates
Trulia recently released its latest findings from the Trulia Price Monitor and the Trulia Rent Monitor. Based on the for-sale homes and rentals listed on Trulia, these monitors take into account changes in the mix of listed homes and reflect trends in prices and rents for similar homes in similar neighborhoods through July 31, 2013.
Asking prices on homes for sale are now starting to lose steam as mortgage rates rise, inventory expands, and investor demand declines. Nationally, asking prices dropped 0.3 percent in July – the first month-over-month decline since November 2012. Seasonally adjusted, prices rose 3.3 percent quarter-over quarter, down from a peak of 4.2 percent in April. Year-over-year, prices are up 11 percent nationally; however, this change is an average over the past 12 months and is therefore slower to show changes than monthly and quarterly numbers.
In 64 out of 100 U.S. metros, the quarterly asking home price gain was lower than in the previous quarter. This slowdown was most apparent in the West Coast where prices already have rebounded strongly. Among housing markets where asking prices rose sharply year-over-year, price gains dipped the most quarter-over-quarter in Las Vegas, Oakland, and San Francisco. Other California metros, including Sacramento, Ventura County, San Jose, and Fresno, saw quarter-over-quarter gains drop by at least two percentage points between April and July.
More info
Ransom Notes 