Las Vegas and Seattle experienced the year’s most dramatic housing market turnarounds, as asking prices rose faster than rents in 17 of the 25 largest rental markets in 2012, according to new data released by Trulia.
Nationally, asking prices in December 2012 increased 5.1 percent year-over-year after being down 4.3 percent in December 2011. Not only are prices rising, but the gains have accelerated over the past year. Quarter-over-quarter price changes were 0.8 percent in Q1 (March 2012); 0.4 percent in Q2 (June 2012); 1.4 percent in Q3 (September 2012); and 2.3 percent in Q4 (December 2012), all seasonally adjusted.
Asking home prices increased the most in Phoenix, which jumped 26 percent year-over-year in December 2012; however, Las Vegas and Seattle both had price gains of 10 percent in 2012 after declines of more than 10 percent in 2011.
Overall, prices rose in 82 of the 100 largest metros at the end of December compared with just 12 out of 100 in 2011.
“The housing market enters 2013 with a running start,” said Jed Kolko, Trulia’s chief economist. “Price gains picked up steam in 2012, starting with modest increases early in the year and accelerating in the third and fourth quarter. In 2013, rising prices will encourage more new construction and will encourage some homeowners to sell, which will help alleviate the current inventory shortage.”
Nationally, rents rose 5.2 percent year-over-year. Locally, rents rose most in Houston, Oakland, and Miami. Rent increases surpassed price increase by a wide margin in Houston, Chicago, Philadelphia, and Baltimore. In contrast, prices grew much faster than rents in Phoenix, Las Vegas, Riverside-San Bernardino, and Sacramento.
2012’s top turnaround housing markets for asking price recovery:
1. Las Vegas
5. San Jose
Where rents rose most in 2012:
6. New York