The latest release from the Trulia Price Monitor and the Trulia Rent Monitor positions the arc of rising home prices well above that of rents going into the new year.
According to Trulia, asking home prices were up 12.1% year-over-year in November, marking growth in all but two of the 100 largest U.S. metro areas. Month-over-month, they were up 1.0%.
To that end, there was a slight quarterly slowdown in some of the hottest housing markets, including Las Vegas, Oakland, Atlanta, Phoenix, Detroit and Los Angeles (in that order). However, prices continued a steady acceleration in warm markets (those were prices rose by less than 10% year-over-year).
Meanwhile, rents were up 3.0% year-over-year in November, with rents accelerating the most in San Francisco, Portland and Seattle. Washington D.C. and Philadelphia were among the markets experiencing decreases in rents.
“Homebuying is much less affordable at the end of 2013 than at the start,” said Jed Kolko, Trulia’s Chief Economist. “Prices rose faster than rents in all of the largest metros, even in San Francisco and Portland, where rents rose 10 percent or more in the past year. Higher prices, along with higher mortgage rates, could make renting a better deal than buying in some markets in 2014.”
Trulia's metrics are early indicators of trends in home prices and rents that are based on real-time Trulia listings.