by Calculated Risk on 12/04/2012 10:08:00 AM

Press Release: Home Prices Rebound in Hard-Hit Atlanta, Sacramento, and the Inland Empire at the Price Recovery Accelerates in November

In November, asking home prices rose 0.8 percent month-over-month (M-o-M), seasonally adjusted–which implies an annualized growth rate of 10 percent. Year-over-year (Y-o-Y) prices increased 3.8 percent, which was also the largest yearly increase to date. Quarter-over-quarter (Q-o-Q) prices rose 2.2 percent, seasonally adjusted, another post-crisis high; in fact, prices rose 0.8 percent Q-o-Q without adjusting for seasonality (not shown in table), even though prices typically decline after the summer. Excluding foreclosures, asking prices rose 4.3 percent Y-o-Y and 1.6 percent Q-o-Q, seasonally adjusted.
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For the first time since the housing crisis began, Atlanta and two inland California metros—Riverside-San Bernardino and Sacramento—all experienced significantly large Q-o-Q asking home price gains. Unlike other hard-hit metros such as Phoenix, Las Vegas, and Miami, prices in these metros have been slower to bounce back, declining in February and making smaller gains in August and May.
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Nationally, rents rose 5.6 percent Y-o-Y, outpacing the national price gain of 3.8 percent. However, asking prices in 14 of the 25 largest rental markets actually rose faster than rents as the price recovery picks up.
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“The key factors behind today’s price gains are job growth, falling vacancies, and–above all–rebounding from the huge price declines of the housing bust,” said Jed Kolko, Trulia’s Chief Economist. “The latest metros to join the price rebound are Atlanta, Sacramento, and Riverside-San Bernardino. Now, all of the metros that suffered most during the bust have had year-over-year price gains.”

These asking prices are SA (Seasonally Adjusted) - and adjusted for the mix of homes - and this suggests further house price increases over the next few months on a SA basis.

More from Jed Kolko, Trulia Chief Economist: Asking Price Gains Accelerate in November, but Local Differences Widen