Archive for December 26th, 2012

Las Vegas Home Asking Prices Up

Wednesday, December 26th, 2012

Listed home prices in Las Vegas rose 13.7 percent last November from a year earlier, according to the online property listing service, which also noted that rents in the same comparative period inched downwards by 0.7 percent.

Signs of a rebound, meanwhile, were also observed in cities of inland California and Atlanta which were erstwhile lagging in the home market recovery, the chief economist of Trulia, Jed Kolko, said. He noted that in the metro area of Riverside-San Bernardino, California, a 5.5 percent price gain was achieved on a quarter-over-quarter basis.

Using the same time frame, a 5.3 percent increase was recorded for Sacramento, the economist said, adding that the increases in these two California metro areas were among the top 10 highest nationally. Their recent performance represents a significant turnaround from what they achieved early this year. Hit hard by the housing market’s meltdown, these metropolitan areas had been slow to recover than other hard-hit cities, like Las Vegas, Phoenix, and Miami which have already benefited from the recent price rebounds.

The asking price for homes in the largest 100 U.S. metropolitan areas gained by 0.8 percent in November, and by 2.2 percent in a quarter-over-quarter comparison. These increases were the biggest on a quarterly and yearly basis since the start of the housing crisis, Kolko said. He likewise noted that the November monthly gain was only slightly lower than the October increase which is likely to be the highest for this year.

In contrast to the steady increases in the biggest among these 100 metro areas, prices are wavering in many other cities, Kolko observed. He also noted a 5.6 percent increase of rents from a year earlier. Nevertheless, gains in home prices are accelerating faster than rents in the majority of the largest rental markets. Kolko believes that the recent trend toward home affordability is losing its steam in the big cities.

A forward-looking index, the Trulia asking price monitor cannot yet be compared with other similar indicators. It won’t be until January 2013 that November figures from other sales price indexes, such as CoreLogic and Case-Schiller, will be released. One of the latest sales reports that have come in is from the Las Vegas-based SalesTraq which showed an average October closing price of $124,000 for existing homes, an 18.1 percent increase from a year earlier. Gains in average home prices have been recorded for nine consecutive months, for a 24 percent increase from the $100,000 median price this January.