Job Growth Drives Home Price Increase Instead of Rebound Effect

The rebound effect is over, says Trulia Chief Economist Jed Kolko. It is no longer the markets hardest hit during the bubble burst that have the largest price gains; it’s the one with the hottest job markets.

According to Kolko, this is because growing employment and income fuels housing demand. The markets where asking prices increased the most in January include Austin, Texas; Denver, Colo.; and Oakland, Calif. On top of the list is Atlanta, Ga., with a 16 percent year-over-year increase for asking price.

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