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Pending homes sales in the US up marginally after two months of declines
Pending home sales were mostly unchanged in the United States in October, but shifted marginally higher after two straight months of declines, according to the latest index data. The figures from the National Association of Realtors (NAR), show that gains in the Northeast and West were offset by declines in the Midwest and South. The Pending Home Sales Index, a forward looking indicator based on contract signings, inched 0.2% to 107.7 in October from an upwardly revised 107.5 in September and is now 3.9% above October 2014. The index has increased year on year for 14 months in a row. Lawrence Yun, NAR chief economist, explained that pending sales have plateaued as buyers struggle to overcome a scant number of available homes for sale and prices that are rising too fast in some markets. ‘Contract signings in October made the most strides in the Northeast, which hasn't seen much of the drastic price appreciation and supply constraints that are occurring in other parts of the country. In the most competitive metro areas, particularly those in the South and West, affordability concerns remain heightened as low inventory continues to drive up prices,’ he said. According to Yun, although contract activity has slightly trended downward since the spring, the ongoing strengthening of several local job markets continues to fuel the improved demand for buying that has now pushed existing sales above a five million sales pace for eight consecutive months. ‘Areas that are heavily reliant on oil related jobs are the exception and have already started to see some softness in sales because of declining energy prices,’ Yun added. With demand expected to remain stable through the final two months of the year, Yun forecasts existing home sales are set to finish 2015 at a pace of 5.30 million, the highest since 2006. He pointed out that although further expansion in existing sales is expected next year, ongoing inventory shortages and affordability pressures from rising prices and mortgage rates will likely temper sales growth to around 3% in 2016. Home prices are expected to slightly moderate from a 6% increase in 2015 to 5% next year. ‘Unless sizeable supply gains occur for new and existing homes, prices and rents will continue to exceed wages into next year and hamstring a large pool of potential buyers trying to buy a home,’ said Yun. A breakdown of the figures show that the index in the Northeast rose 4.5% in October, and is now 6.8% above a year ago. In the Midwest the index fell by 1% but remains 3.3% above October 2014. Pending home sales in the South decreased 1.7% in October and are now 0.3% below last October. The index in the West climbed 1.7% in October and is 10.4% above a year ago. Continue reading
Number of new affordable homes built in UK up 55% year on year
The latest figures show 66,640 new affordable homes were delivered in the UK in the last year, 55% more than the previous year and the fastest rate of growth since 1993. Communities Secretary Greg Clark said this was further proof of the government’s commitment to get more homes built. He announced that the number of social and affordable rented homes has increased by nearly two thirds, and the number of affordable homes to buy rose by 41% over the same time period. ‘We are far from complacent and the doubling of government investment in house building announced at the recent Spending Review reaffirms our commitment to deliver a million new homes by 2020,’ said Clark. He pointed out that affordable homes to rent and buy are a key part of that, helping to give young people and families across the country the best possible start in life. Housing Minister Brandon Lewis said it showed that house building efforts are paying off. ‘This is real progress but there is more to do. That’s why we are going further and increasing our investment in these homes to ensure many more people can benefit,’ he added. The figures mean that over 270,000 new affordable homes have been delivered since 2010. At the Spending Review last week, the government announced plans to double investment in house building to £8 billion, to help towards delivering one million homes by 2020 and to deliver the largest affordable housebuilding programme since the 1970s. This includes 135,000 new homes to buy through a new Help to Buy: Shared Ownership scheme, a new London Help to Buy, to help aspiring home owners in the capital to buy with a fraction of the deposit they would normally require and 200,000 new Starter Homes, which will be available at a 20% discount to young first time buyers. This is on top of measures included in the Housing and Planning Bill currently going through Parliament, including ensuring new Starter Homes are included on all reasonably sized development sites. The Bill will also mean giving communities the power to grant permission in principle on sites identified in local plans and on brownfield registers, to speed up the planning system while at the same time protecting the green belt and planning reforms to support small builders, with a requirement for councils to offer shovel ready sites for custom build homes. Continue reading
Poll finds UK home buyers think conveyancing process it old and slow
The legal conveyancing process when buying a home in the UK is often seen as too complicated and slow and in need of modernisation, according to a new survey of home owners. Some 42% felt their experience of the process was too complicated and slow and only 4% of felt the process was quick while 23% felt it need to be brought up to date, the YouGov poll for land, environment and property data firm Landmark Information Group. With home buyers becoming more aware of environmental risks that could affect properties following high profile flooding events, the emergence of sinkholes and other such land based risks, some 37% agreed that the home buying process would be improved if all environmental search information was provided online, instead of through the post. To add to this, 22% said they were confused and relied on the guidance provided by the solicitor when receiving the environmental search reports, in order to summarise the key findings and interpret the risks. When asked whether enough environmental information is provided as part of the home buying process, 785 people from the total 1,314 respondents provided an answer, of which 26% felt that not enough information was provided to them by their solicitor. ‘With everything being digital in today's world, people are used to carrying out transactions with speed and immediacy. It is clear that changes need to happen in order to meet people's evolving needs and expectations,’ said Angela Gordon-Lennox, product manager (legal) of Landmark Information Group. The survey also found that 22% want easy to read information, while 37% agreed or strongly agreed that the home buying process would be improved if all environmental information from a conveyancing solicitor was provided via the Web instead of through the post. The firm is currently market testing a new all in one environmental report for the conveyancing industry called RiskView Residential which also provides interactive links to an online portal, enabling home owners to instantly visualise environmental risks on a digital map. The aim is to collectively present the findings previously provided in four separate legal reports in one order. This includes flood risk, contaminated land, ground hazards, and energy and infrastructure. The combined analysis is delivered in an easy to read lightweight PDF report, which includes interactive web-links enabling conveyancers and their clients to click through and instantly view the data within an interactive online map. ‘So far, the feedback received is that not only does RiskView Residential help simplify the process, but it is the first radical step in taking conveyancing due diligence into a fully digital age,’ said Gordon-Lennox. Continue reading
