Asking prices for homes listed for sale on Trulia were up a seasonally adjusted 3.1 percent in the three months through August from the previous quarter, according to Trulia’s August price and rent report. However, Trulia Chief Economist Jed Kolko expects the upward price trend to slow based on rising mortgage rates, growing housing supply and a slowdown in investor activity.

Recoveries in local markets — beyond price gains — are driven by construction, Kolko noted in a blog post on the release at Trulia, and 2013 construction permits are just “60 to 70 percent of the average levels seen between 1990 and 2012.”

Markets like Las Vegas, Detroit, Atlanta and Sacramento, Calif., that have seen large price gains recently are places with below-normal construction activity largely because those markets were hit hardest by the housing crash and so were set up to experience bigger price increases in the recovery. Builders don’t want to put up as many homes in markets like these where there are an oversupply of bargain homes and higher vacancies, Kolko said.

Instead, he wrote, builders are looking to markets like Houston, Boston, Oklahoma City and Austin, Texas, that experienced less tumult and fewer price swings during the housing crash, to ramp up their activity.

Overall, rents rose 3.5 percent in August from August 2012 with a majority of that increase associated with apartment units (3.9 percent) versus single-family home rentals (1.6 percent), according to the release.

Source: Trulia

Show Comments Hide Comments
Sign up for Inman’s Morning Headlines
What you need to know to start your day with all the latest industry developments
By submitting your email address, you agree to receive marketing emails from Inman.
Success!
Thank you for subscribing to Morning Headlines.
Back to top
Only 3 days left to register for Inman Connect Las Vegas before prices go up! Don't miss the premier event for real estate pros.Register Now ×
Limited Time Offer: Get 1 year of Inman Select for $199SUBSCRIBE×
Log in
If you created your account with Google or Facebook
Don't have an account?
Forgot your password?
No Problem

Simply enter the email address you used to create your account and click "Reset Password". You will receive additional instructions via email.

Forgot your username? If so please contact customer support at (510) 658-9252

Password Reset Confirmation

Password Reset Instructions have been sent to

Subscribe to The Weekender
Get the week's leading headlines delivered straight to your inbox.
Top headlines from around the real estate industry. Breaking news as it happens.
15 stories covering tech, special reports, video and opinion.
Unique features from hacker profiles to portal watch and video interviews.
Unique features from hacker profiles to portal watch and video interviews.
It looks like you’re already a Select Member!
To subscribe to exclusive newsletters, visit your email preferences in the account settings.
Up-to-the-minute news and interviews in your inbox, ticket discounts for Inman events and more
1-Step CheckoutPay with a credit card
By continuing, you agree to Inman’s Terms of Use and Privacy Policy.

You will be charged . Your subscription will automatically renew for on . For more details on our payment terms and how to cancel, click here.

Interested in a group subscription?
Finish setting up your subscription
×