Home prices may be plateauing across the U.S., but the increase in asking prices for homes has accelerated in 40 of the nation’s largest 100 metro areas in October compared to last year.
New research suggests an improvement in slowing national house prices may be in the cards by the end of the year. The asking prices for homes rose 1% nationally in October over the previous month and increased 6.4% annually in October, which was still down from the 10.3% annual rise in October 2013, according to the latest data from real-estate website Trulia’s “Price Monitor.”
Although homes often sell for below and sometimes above asking prices, they’re an early leading indicator of house prices and lead final sales prices by around two months or more, says Jed Kolko, chief economist at Trulia, and adjust for the mix of listed homes. While price gains slowed in 60 metro areas and accelerated in 40 of them, the actual asking prices only fell in 9 metro areas.
This is in contrast to house price data from S&P/Case-Shiller’s 20-city composite index released last month. U.S. home prices rose by just 0.2% in August 2014 over the previous month, slower than the 0.6% rise in July, the survey found. Still, house prices increased by 5.6% in August, which was the slowest pace since November 2012 and slower than annual growth of 6.7% in July 2014.