Market Trends Observed In April 2012: Asking Prices And Rental Costs Are Clearly On The Rise
A few weeks ago, the Trulia Price Monitor and Trulia Rent Monitor were introduced to the public as pioneering indicators as to how asking prices and rental costs happen to be trending across the country. Being in the first week of the month of May, many would like to know exactly how prices and rental costs behaved in April.
April Marks The Third Month Of Price Increase
Across the nation, it seems that housing prices have reached as low as they could get and are on their way back up again. Homes for sale have gone up in price by as much as 1.9 percent from prices in the previous quarter. A month-over-month increase of 0.5 percent was noted on top of month-over-month increases from the months of March and February which means that April marks the third consecutive month of asking prices going up within the country.
Looking on a much larger scale, prices have either remained at a stand-still or have started going up over the last eight months although a dip was noted in December of 2011. Nevertheless, asking prices are 0.2 percent higher than they were in April of 2011.
But observations have shown that the increasing prices are really looking like a trend across the nation and many believe that the trend is bound to come to your area if the trend hasn’t already reached it.
44 out of the 100 largest metropolitan areas within the United States have experienced the impact of the trend with areas such as Miami and Phoenix taking the lead.
People who are interested to find out why Miami and Phoenix are heavily influenced by the trend will find that the job growth within these areas have made an impact on the demand for real estate.
Also, the actual price declines which were experienced in the after-math of the bubble which had brought many home buyers and investors into those areas has also been considered to be a contributing factors as it has been noted that the markets which experienced the largest increases were also the same ones which had suffered the most in terms of price declines from the bust.
Rent Is Also On The Rise In The Month Of April
The demand for rental properties has proven to be strong even as rental costs have gone up by as much as 5.6 percent on a national year-over-year scale. Job growth has also been identified as a contributing factor as areas with the largest increase in rental costs have also been the ones with the most impressive job growth.
Another factor which is believed to have contributed to the rising cost of rent is the drop in homeownership as many have been forced out of their homes due to foreclosure. As a result, people are resorting to rental properties which have increased the demand along with the cost of these options.
Viewing The Current Trend On A Local Scale
Neighborhoods within various areas across the United States have had their own price and rent trend which are worth looking into and trends within New York, Los Angeles, Chicago, Washington DC and San Francisco Bay have been among the five metros which have captured the eye of real estate observers in the month of April.
New York has seen price grow year-over-year within areas such as Manhattan, Staten Island and Brooklyn while other parts of the city have experienced a decline. Rentals, on the other hand, have gone up in both the city as well as suburban neighborhoods in the region.
Los Angeles has experienced an increase in asking prices on real estate, but only in its downtown area as prices have dropped all throughout the rest of the region, and most entirely within Long Beach. Much like New York, rents have also gone up all over the region—with Long Beach being the exception—as downtown areas within LA are going through the largest increases in both asking price and rental cost.
Asking prices within Chicago have dropped across the region but northern and southern suburban neighborhoods within the region have experienced the worse drops. Washington DC, on the other hand, experience price gains across the region although the smallest percentages were noticed within the Prince George’s County, MD.
Given all of these observations gathered from the month of April, it seems that the emerging trends show that the most central urban locations have a higher tendency to experience bigger price gains (or smaller decline percentages) compared to suburban areas although there are a few exceptions which have not made any apparent patterns across the country. Whether or not the trend will carry on throughout the month of May has yet to be found but with indicators like these, people will easily know what to expect.