Tag Archives: asia
Irish property prices dipped slightly in January but growth set to continue in 2016
Residential property prices in Ireland are up 7.6% year on year but fell by 0.5% in January, according to the latest index figures to be published. The data from the Central Statistics Office shows that the annual growth of almost 8% compares with an increase of 6.6% in December and an increase of 15.5% recorded in the 12 months to January 2015. Month on month, January’s fall of 0.5% compares with an increase of 0.5% recorded in December and a decrease of 1.4% recorded in January of last year. A breakdown of the figures shows that in Dublin property prices decreased by 1.2% in January and were 3.4% higher than a year ago. Dublin house prices decreased by 1.1% in the month and were 3.2% higher compared to a year earlier while apartment prices were 4.8% higher when compared with the same month of 2015. Prices in the rest of Ireland rose by 0.1% in January compared with a decrease of 0.9% in January of last year. Prices were 11.4% higher than in January 2015. But prices are still some way below their peaks in 2007. For example in Dublin prices are 34.9% lower than at their highest level in early 2007. Apartments in Dublin are 41.8% lower than they were in February 2007 while house prices are 36.8% lower than at their highest level in February 2007. Prices in the rest of Ireland are 35.3% lower than their highest level in September 2007 and overall, the national index is 33.8% lower than its highest level in 2007. A lack of supply, particularly in Dublin has been pushing up prices, according to Alan McQuaid of Merrion Stockbrokers, and he expects price growth to be more modest over the next year or two. Investec economist Philip O’Sullivan pointed out that the market has been affected by new mortgage lending rules from the Central Bank introduced in February 2015 which restrict lending multiples and loan to values and he expects prices to keep growing once the impact has lessened. Demand is likely to strengthen and with supply increasing only slowly, prices are expected to pick up as the year progresses, although short term trends are likely to remain weak, according to Dermot O’Leary, chief economist with Goodbody Stockbrokers. Continue reading
Lack of homes for sale hampering buyers in the United States
A lack of homes for sale across the United States continues to limit choices available to potential buyers, putting a strain on markets across the country, new research reveals. In January buyers had 8.6% homes to choose from than they did last year, according to the latest real estate market report from property firm Zillow. It also shows that housing starts reached a three month low in January, indicating that newly built homes will not be a significant benefit for buyers, either. The firm says that a restricted supply of homes for sale will mean increased competition for homes that are available, and bidding wars that can price out entry level or first time buyers. Low inventory, along with a strong job market has been driving up home prices, especially on the West Coast. Across the country, only a quarter of markets saw inventory increase over the past year. Among the largest metros in the country Atlanta saw the largest increase in available homes for sale at 6.8% while buyers in San Diego have significantly fewer options with inventory down 30%. Besides inventory, Zillow looks at price cuts and days on market to help identify whether markets are better for buyers or sellers. It found that markets that benefit sellers are mostly grouped in the West, where buyers are more likely to face bidding wars. Buyers will find themselves with more bargaining power in the East, in markets like Philadelphia and Baltimore. ‘If you're looking for a home or trying to sell, it's important to know what kind of market you're in. Hopeful buyers in a strong sellers' market should be prepared to move quickly, since homes don't stay on the market as long,’ said Zillow chief economist Svenja Gudell. ‘In a buyers' market, they can afford to take their time and be more selective. However, low inventory is a factor affecting the majority of the country, so buyers should be prepared for a limited selection as we enter the home buying season,’ she explained. National home values rose 4.2o % $184,000, according to the Zillow data meaning that the pace of home value appreciation has increased for 10 months in a row. Denver and Dallas continue to lead the way, with strong double digit increases in home values. Rents, on the other hand, continued their recent trend of levelling off, growing 2.9% year on year from January 2015. San Francisco was the only large metro to see double digit rent increases. Continue reading
Homes for sales in UK slump to 14 year low
The supply of available housing in the UK is at its lowest level in 14 years with buy to let landlords rushing to complete ahead of tax change, new research shows. Property investors are trying to avoid the additional 3% stamp duty charge on buy to let and second homes from 01 April, according to the report from the National Association of Estate Agents (NAEA) but sales to first time buyers are also up. The January Housing Market report shows that the number of properties available per member branch fell to 33 in January, the lowest recorded since December 2002 when just 25 properties were available per member branch. In contrast, demand for housing soared in January, with an average 453 house hunters registered per branch, the highest recorded since July 2015 and a 21% increase from December when there were an average 374 registered, during a seasonal lull in activity. This reflects increased activity from landlords pushing to complete sales ahead of the upcoming buy to let stamp duty surcharge, the report suggests. Indeed, 72% of estate agents reported an increase in interest from landlords, a rise from 44% in December. Almost a third, 29%, of the total sales made in January were to first time buyers, an increase of 5% from December 2015, the report also shows. ‘Our findings this month reflect what we are all seeing across the market which is that landlords are trying to complete on sales ahead of the changes to stamp duty on additional homes in April. It continues to be a sellers’ market as demand outstrips supply,’ said Mark Hayward, NAEA managing director. ‘The number of sales made to firs time buyers has increased this month, and we should expect to see their market share rise after April. The fact that housing supply has reached a 14 year low really highlights the need for the government to push the house building programme to the very top of their agenda and help more first time buyers make their first step on to the housing ladder,’ he added. Continue reading
