Asking Price growth appears to be slowing nationally, but that was hardly the case here in Chicago, according to new research from Trulia.
Chicago’s for-sale market continued to outpace its rental market in August, according to the latest Price and Rent Monitors from real estate website Trulia.
For August, Chicago’s asking prices rose 12.2 percent year-over-year (up from 11.3 percent in July), while rising 5.6 percent from the second quarter. That’s compared to just a 2.6 percent yearly increase for asking rents in the Windy City.
Nationally, asking prices were up 11.0 percent yearly and 1.2 percent monthly, while rents only rose 3.5 percent yearly (with just a 1.6 percent uptick for single-family rentals); however, quarterly asking prices for the nation were up 3.1 percent, which was down from 3.2 percent in July and 4.0 percent in April, and suggests, said Jed Kolko, Trulia’s chief economist, a slowdown for home prices.
“The rate spike since early May has raised the cost of a mortgage by more than 10 percent, but rising rates aren’t the whole story behind the price slowdown,” Kolko said. “Expanding inventory and declining investor interest have helped cool prices, too. At the same time, mortgage credit has finally started to expand, and the economy continues to strengthen – both of which boost housing demand and offset some of the dampening effect of rising rates.”
Interested in how Chicago’s home prices compared with other major metropolitan markets? Check out our infographic below for some perspective: