Trulia: M-o-M Home Price Increases Slowing

SAN FRANCISCO-Trulia, Inc., a leading online marketplace for home buyers, sellers, renters, and real estate professionals, has released the latest findings from the Trulia Price Monitor and the Trulia Rent Monitor. These indices are the earliest leading indicators available of trends in home prices and rents. Based on for-sale homes and rentals listed on Trulia, the 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 October 31.

In October, asking home prices increased 0.6% month-over-month (M-o-M), the second-slowest monthly gain in seven months. This continued slowdown in asking prices is largely due to expanding inventory, rising mortgage rates, and declining investor activity. Asking prices could potentially slow further if consumer confidence suffers from the ongoing budget uncertainty and future shutdown and debt-default worries. Nevertheless, the monthly, quarterly, and yearly gains are all still high compared with historical norms. In fact, asking prices rose 11.7 % year-over-year (Y-o-Y) – the highest increase since the housing bubble burst.

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