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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
Brexit threat should not hamper Brits buying in France
British people looking to buy a property in France this year are being urged not to worry about the vote on the UK staying in the European Union due to take place in June. There have been scare stories about what might happen if the UK leave the EU bit according to agents in France very little is likely to change. Indeed, they are reporting an uptick in inquiries which suggests that in reality potential buyers are not worried. According to Trevor Leggett, chairman of Leggett Immobilier which has agents across France, there has been no slowdown in demand from UK purchasers and activity is 40% higher than 12 months ago which was a record year. ‘Our view is that even if the vote was to leave the EU there would be little in the way of substantial change. The polls suggest it will be tight but tipped towards an In vote,’ said Leggett. According to Sextant French property even if the public vote to leave the EU nothing would happen suddenly. There would be a period of negotiations over benefits, pensions and healthcare which might affect expats but not necessarily second home owners. The firm has just reported a record year with an estimated 800,000 sales made in 2015, and buyers are making the most of current market conditions which include favourable exchange rates, low mortgage rates and low prices. ‘A Brexit would not stop you from buying your dream house across the Channel. Nany non-EU buyers from as far flung destinations as Australia and China already buy in France undeterred. The Brexit uncertainties lie largely in tax arrangements, obtaining mortgages and the potential weakening of the pound,’ said a Sextant spokesman. ‘Tax arrangements will depend on negotiations in the grace period following the referendum, though happily double taxation agreements will remain unchanged, ensuring you will never be taxed twice on your income,’ he explained. ‘In the short term run up to the referendum certainly, the pound could drop as uncertainty and instability will always disturb the markets to some extent. Once an outcome has been reached, we can hope that the markets have enough confidence to begin to level out,’ he added. For British people living in France there may not be much change. If the UK votes to leave it is highly likely that it will become a member of the European Economic Area (EEA). Iceland and Norway are already members. EEA membership could also result in retention of the European Health Insurance Card (EHIC) card and thus access to healthcare at the same rate as currently. The UK has never been part of the Schengen agreement of totally free border control so nothing would change. ‘Whichever way the UK votes, at Sextant we don't believe British interest in buying French property will be dampened, nor do we believe that the dream will become unattainable or unviable,’ he concluded. Continue reading
