Price Increases Starting To Slow After Big Gains

The results of Trulia’s most recent Price Monitor found home prices have increased faster than normal on a monthly, quarterly and yearly basis when compared to historical averages. In fact, home values have risen nearly 12 percent over the last year, which is the highest increase since the housing bubble burst. But despite the year-over-year gains, October asking prices were up just 0.6 percent from the month before. Jed Kolko, Trulia’s chief economist, said – though asking prices rose at the second-slowest pace in seven months – they are still rising unsustainably fast. Kolko cautions that, while the market is far from bubble territory, the effects of fast-rising prices will be noticeable, including sellers waiting longer to put their homes on the market. Trulia’s Price and Rent Monitors are the earliest leading indicator of trends in rent and home prices. More here.

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