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Trulia: Chicago Asking Prices Bounced Back in Major Way in June

by Peter Thomas Ricci

After finally bottoming, asking prices in Chicagoland are on a seriously promising trajectory, according to the latest Trulia Price Monitor.

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Asking prices in Chicagoland bounced back in a major way in June, increasing 8.4 percent year-over-year and 5.4 percent quarter-over-quarter, according to the latest Trulia Price Monitor.

That’s not only stronger than the Chicago market’s 4.9 percent year-over-year increase in asking rents, but the second-strongest yearly increase in the nation among markets that recently bottomed. In addition, the Lake County-Kenosha County market saw asking prices rise 7.9 percent, the third-highest in the nation among bottomed markets.

Trulia Price Monitor – No Signs of Cooling?

Nationwide, asking prices continued their double-digit spectacles:

  • Year-over-year, asking prices rose 10.7 percent in June, and excluding foreclosures, prices were up 11.4 percent.
  • In addition, asking prices were up 1.5 percent from May and 4.1 percent from the last quarter.
  • Ninety-nine of the 100 markets that Trulia tracks saw their asking prices rise from last year (Philadelphia was the one exception, though prices fell a minuscule 0.01 percent).
  • Consistent with past Price Monitors, asking prices exceeded asking rents by a hefty margin, with rents rising just 2.8 percent year-over-year; in fact, only three markets – Houston, New York and Philadelphia – saw rents rise faster than home prices.

Jed Kolko – Home Price Gains “Won’t Last”

Jed Kolko, Trulia’s chief economist, said that though the universality of June’s home price gains is certainly a good thing, we shouldn’t grow too comfortable with double-digit increases.

“Rising home prices have swept the country,” Kolko said. “Local markets that suffered most during the housing crisis are seeing the biggest price rebounds today. Now even markets that escaped the worst of the bust, like Chicago and Baltimore, are seeing prices climb.

“However,” he continued, “these runaway price gains won’t last: both rising mortgage rates and slowly growing inventories should start tapping the brakes on home prices, preventing them from rising back into bubble territory.”

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