Housing Markets with the Biggest Price Rebounds Still Lag in Construction Activity, Reports Trulia

Trulia, Inc. (NYSE: TRLA), a leading online marketplace for home buyers, sellers, renters, and real estate professionals, today released the latest findings from the Trulia Price Monitor and the Trulia Rent Monitor. These indices are the earliest leading indicators available of trends in home prices and rents. Based on for-sale homes and rentals listed on Trulia, the monitors take into account changes in the mix of listed homes and reflect trends in prices and rents for similar homes in similar neighborhoods through August 31, 2013.

Despite Rise in August, Asking Home Price Slowdown Continues

Asking home prices rose 11.0 percent year-over-year (Y-o-Y) and 1.2 percent month-over-month (M-o-M) in August. However, a closer look at the quarterly changes in asking home prices reveals a downward trend that’s much less volatile than the monthly changes suggest. Quarter-over-quarter (Q-o-Q), asking home prices rose 3.1 percent in August, down from 3.2 percent in July and 4.0 percent in April. And this downward slope will likely continue as mortgage rates rise, inventory expands, and investor interest declines.

August 2013 Trulia Price Monitor Summary

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# of 100 largest % change in

metros with asking prices,

% change in asking- price excluding

asking prices increases foreclosures

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Month-over-month,

seasonally adjusted 1.2% Not reported 0.8%

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Quarter-over-quarter,

seasonally adjusted 3.1% 96 3.6%

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Year-over-year 11.0% 98 11.3%

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NOTE: Monthly change is August versus July. Quarterly and yearly changes are

three-month averages. Data from previous months are revised each month, so

data being reported now for previous months might differ from previously

reported data.

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Despite Recent Price Gains, Construction Lags in Las Vegas and Sacramento

A full housing recovery requires rebounds in both prices and new construction. Rebounding prices normalize the housing market by lifting homeowners back above water and encouraging them to sell. Meanwhile, construction activity signals that a housing market is no longer flooded with empty homes. Despite the fact asking home prices are up 11.0 percent Y-o-Y, construction activity still isn’t back to its normal level yet: construction permits in 2013 are around just 60-70 percent the average levels seen between 1990 and 2012. Among housing markets where asking home prices rose more than 20 percent Y-o-Y, construction was less than half the normal level in Las Vegas, Sacramento, Riverside-San Bernardino, Warren-Troy-Farmington Hills, and Detroit. Only Orange County and San Jose were at or above normal construction levels.

Where Asking Home Prices Rose Most

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Construction permits,

2013 year-to- date,

Y-o-Y % change in Asking relative to local

U.S. Metro Home Price, August 2013 long-term normal

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Las Vegas, NV 33.6% 39%

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Sacramento, CA 31.9% 38%

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Oakland, CA 29.3% 60%