Rents rise faster than asking prices

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With the exception of nearly flat prices in May, asking prices rose in four of the past five months. Asking prices in June rose nationally 0.8 percent quarter over quarter, seasonally adjusted.

Year-over-year asking prices rose by 0.3 percent; excluding foreclosures, asking prices rose by 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 price increases, seasonally adjusted, according to Trulia.

However, the modest asking price gains trailed rent increases.

Nationally, rents were 5.4 percent higher in June than they were a year ago, and rents increased Y-o-Y in 24 of the 25 largest rental markets - all except Las Vegas.

Rent increases outpaced price increases in 22 of the 25 largest rental markets.

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

“We saw asking prices start to rise in February and predicted that other home price indexes would report sales price increases this summer for those homes - and they have,” said Jed Kolko, Trulia’s Chief Economist.

“Since February, asking prices showed solid gains in four out of five months, including in June, so I expect to see the sales-price indexes show further increases in the months to come.