Asking Prices May Presage Turnaround, Report Says

April 6, 2012

in News

Asking Prices May Presage Turnaround, Report Says

Once gun-shy home sellers may be feeling more confident as they set listing prices these days, which could translate into higher sales prices down the road, according to a report. The asking prices for homes on the market climbed 1.4% nationally in the first quarter compared with the prior quarter, said Jed Kolko, chief economist for home-listings company Trulia. The report, which tracks asking prices for Trulia’s listings in 100 metro markets, showed the largest month-over-month uptick since the beginning of 2011. Asking prices rose 0.9% in March and 0.6% in February. The highest monthly increase in 2011 was an anemic 0.2%. Since the year-ago period, asking prices were down 0.7%. Typically, Mr. Kolko said, sales prices lag behind listing-price trends by two to three months. This is the first time Trulia has produced this report, which aims to use asking-price data over the past year to predict market trends. On an unadjusted basis, asking prices rose 2.4% over the prior quarter. The most dramatic improvement is being seen in markets like Fort Myers, Fla., and Phoenix, where the foreclosure crisis struck hard and early. [Read this article]

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