Trulia: Asking Prices Decline in July

The Trulia Price Monitor for July was down 0.3% on a seasonally adjusted basis compared with June, the first decline in seller asking prices on a month-to-month basis since last November. Year-over-year, prices are up 11%.

If foreclosures are removed from the equation, there was a 0.6% gain in month-to-month asking prices and an 11.5% year-over-year increase.

Trulia also found that year-over-year increases in asking prices in the 25 largest rental markets were greater than the increases in rents over the same time frame.

For example, Seattle had a 16% year-over-year increase in asking price and an 11.1% increase in rent; San Francisco 17.2% for asking price, 8.1% for rent; Portland, Ore., up 18.1% in asking price and 7.7% for rent.

“If you were worried about a housing bubble, July’s asking-price slowdown will probably be the best news you’ve heard this year,” said Jed Kolko, Trulia’s chief economist. “The asking home price slowdown in July could be the start of the return to normal price gains. The blazing fast price increases we’ve seen in recent months could not last, especially with rising mortgage rates, expanding inventory, and declining investor interest.”