Asking home prices rose 3.8% year-over-year, the largest annual increase to date, Trulia (TRLA) reported Tuesday. In November, prices increased 0.8% month-over-month, seasonally adjusted- indicating an annualized growth rate of 10%.
The latest findings came from Trulia Price Monitor and the Trulia Rent Monitor, which reveal a peak into available trends in home prices and rents. Trulia bases its reports on houses for sale as well as rentals listed on the Trulia website through Nov. 30.
Atlanta and two inland California metros – Riverside-San Bernardino and Sacramento – experienced notably large quarterly asking home price gains for the first time since the beginning of the housing crisis. These metros struggled to bounce back from the crisis, declining in February and making significantly slower gains in August and May compared to other hard-hit metros such as Phoenix, Las Vegas and Miami.
“The key factors behind today’s price gains are job growth, falling vacancies, and–above all–rebounding from the huge price declines of the housing bust,” said Jed Kolko, Trulia’s Chief Economist. “The latest metros to join the price rebound are Atlanta, Sacramento, and Riverside-San Bernardino. Now, all of the metros that suffered most during the bust have had year-over-year price gains.”
Other metros worth noting include Salt Lake City and Wilmington, DE, which both saw a 7% or higher increase in quarterly gains.
Year-over-year, rents continues to rise, jumping 5.6% nationwide, while price gain only experienced a 3.8% increase. With that in mind, asking prices in 14 or the 25 largest rental markets increased quicker than rents as the housing recovery picks up speed.