Online real estate listing company Trulia released its monthly report yesterday on asking prices for homes listed for sale in October (a leading indicator of future home sales prices), with the following highlights:
In October, asking prices rose 0.7% month-over-month, for a 2.9% year-over-year increase – the biggest yearly gain in the Trulia Price Monitor to date. More than two thirds of large metros – 69 out of 100 – had year-over-year price increases. The month-over-month and quarter-over-quarter price increases are larger when foreclosures are included than when they’re excluded – which means foreclosure prices are now rising faster than prices on non-distressed homes.
The record-high 2.9% year-over-year increase in asking home prices in October followed gains of 2.5% in September and a 2.3% gain in August. Many metro markets are seeing double-digit gains in asking prices compared with a year ago including Phoenix (24.9%), Fort Myers (15.7%), San Jose (12.7%), Warren-Troy-Farmington Hills (11.8%), West Palm Beach (11.3%), Las Vegas (10.9%) and Denver (10.1%).
Because asking prices lead sales prices for homes by about two or three months , the upward trend in “Trulia’s Price Monitor” suggests that we can expect the increases in home sales prices year-to-date to continue in the coming months.