Trulia: Home Prices to Rise In 2013

The strength seen in home prices in 2012 will continue into 2013.

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Asking prices for homes were up more than 5 percent year-over-year across the nation in December, according to data released by real estate information website Trulia. Of the 100 major metropolitan areas tracked by the survey, 82 saw year-over-year gains in 2012, compared to just 12 in 2011.

[READ: Why America's Aging Houses Are a Good Thing]

"The housing market enters 2013 with a running start," Jed Kolko, Trulia's Chief Economist, said in a news release. "Price gains picked up steam in 2012. In 2013, rising prices will encourage more new construction and some homeowners to sell, which will help alleviate the current inventory shortage."

A low supply of homes for sale throughout 2012 has been blamed for stunting the slowly improving housing market, with the tightest markets in Western states. That in turn has fueled substantial price increases in the region with four of the top 10 cities with the largest asking price jumps in California.

Las Vegas took the prize for the largest year-over-year gain in asking prices, recording a more than 16 percent jump. Over the same period in 2011, asking prices sank more than 11 percent.

[READ: 6 Reasons You Shouldn't Refinance]

But although Las Vegas has seen steep asking price gains, it will still experience challenges in the coming year, Kolko says. That's because a combination of poor job growth, high vacancy rates, and foreclosure problems still plague the desert city. It's not the only one to be in this position.

"Places like Detroit, West Palm Beach, and even Miami saw steep price increases year-over-year, yet at the same time they've had slow job growth, high vacancies, and a big foreclosure inventory," Kolko told U.S. News in December.

On the rental side of the housing market, rates continued to rise, jumping more than 5 percent year-over year, still slightly ahead of the national home price gain of 5.1 percent. Overall, home prices rose faster than rents in 17 of the 25 largest rental markets in 2012. Rents, however, are outpacing prices significantly in Houston, Chicago, Philadelphia, and Baltimore.

Here's a look at the top turnaround housing markets of 2012 in terms of asking prices. Did your city make the list?

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1. Las Vegas, Nev.

Year-over-year % change in asking prices (Dec. 2012): 16.3 percent

Y-o-Y % change in asking prices (Dec. 2011): -11.2 percent

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2. Seattle, Wash.

Year-over-year % change in asking prices (Dec. 2012): 10.2 percent

Y-o-Y % change in asking prices (Dec. 2011): -13.8 percent

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3. Phoenix, Ariz.

Year-over-year % change in asking prices (Dec. 2012): 26 percent

Y-o-Y % change in asking prices (Dec. 2011): 4.2 percent

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4. Oakland, Calif.

Year-over-year % change in asking prices (Dec. 2012): 12.7 percent

Y-o-Y % change in asking prices (Dec. 2011): -8.4 percent

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5. San Jose, Calif.

Year-over-year % change in asking prices (Dec. 2012): 16.1 percent

Y-o-Y % change in asking prices (Dec. 2011): -4.7 percent

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  • Meg Handley is a reporter for U.S. News & World Report. You can follow her on Twitter or reach her at mhandley@usnews.com.