City Vs. Suburb: Where Prices Are Rising Fastest

Despite more homes being put up for sale in anticipation of the spring home buying season, asking prices are up from last year in 97 of 100 metropolitan areas tracked by Trulia’s Price Monitor. Typically, more homes on the market keeps prices from increasing but, because this spring is expected to be a good one for housing, prices have continued to rise. In fact, asking prices are up 10 percent nationally over the past year and climbed 1.2 percent in March from February’s level. The report also found that price per square foot increased more in cities than in suburban neighborhoods. High-density, urban neighborhoods experienced price increases of 9.8 percent since last year, while homes in the suburbs saw prices rise 9.4 percent. Still, population growth in suburban neighborhoods was stronger than city neighborhoods over the past year. According to the report, this is true because – though more people moved to the suburbs – there is more room for new construction in suburban areas and the ability to create more inventory to meet buyer demand helps moderate price gains. More here.

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