Tag Archives: crisis
Irish property prices fall for second month in a row
Residential property prices in Ireland fell by 0.4% in February, the second monthly decline in a row, the latest index data shows. The fall last month comes on the back of a 1.4% decline in January amid concerns that the country’s real estate recovery could be stalling. In Dublin, the decline was more pronounced, with average prices falling by 0.7%, according to the data from the Central Statistics Office. However, despite this fall, residential property prices remained up 14.9% on an annual basis. In Dublin property prices were still 21.4% higher than in February 2014. A breakdown of the figures shows that Dublin house prices fell by 1% in February whilst Dublin apartment prices increased by 2%. However, a spokesman said that it should be noted that the sub-indices for apartments are based on low volumes of observed transactions and consequently suffer from greater volatility than other series. In the rest of Ireland residential property prices were unchanged in February. However, prices were still up 8.2% compared with February 2014. At national level residential property prices were 38.7% lower than their peak level in 2007. Dublin house prices were 37.6% lower than their peak, Dublin apartment prices were 43.3% lower than their peak and Dublin residential property prices overall were 39.3% lower than their highest level. Outside of Dublin residential property prices were 41.9% lower than their highest level in 2007. ‘With prices continuing to rise more quickly than earnings affordability constraints are beginning to have an impact. This has removed some of the heat that was evident in the market in the middle of last year,’ said John McCartney of Savills. ‘Agents are now reporting that buyers are no longer in a frenzy to buy for fear that prices will run beyond their means. This is a very positive development as expectations of rapid price growth can become self-fulfilling and can quickly lead to overheating,’ he added. It is a welcome slowdown in Irish house price inflation rather than a collapse in prices, according to Conall MacCoille, chief economist at Davy Stockbrokers, who said at over five times average incomes, house prices no longer look cheap. ‘This slowdown is not surprising or undesirable. Ideally, Irish house prices will now rise in line with nominal wages so affordability is not stretched further,’ he explained, adding that it was too early to say what kind of dampening effect new central bank restrictions on mortgage lending will have. The Economic and Social Research Institute (ESRI), an independent think-tank partly funded by the Irish government, said that while the measures may slow down house price growth, this could come at the expense of rising rents and fewer houses being supplied amid major shortages of supply in Dublin. Continue reading
UK property prices up 8.4% year on year, but annual growth still slowing
UK house prices increased by 8.4% in the year to January 2015, down from 9.8% in the year to December 2014, according to the latest index. House price annual inflation was 8.5% in England, 4.9% in Wales, 7.8% in Scotland and 7.3% in Northern Ireland, the data from the Office of National Statistics show. Overall it means that annual house price growth is beginning to show signs of slowing across the majority of the UK. Annual house price increases in England were driven by an annual increase in London of 13% and to a lesser extent increases in the East at 9.9% and the South East at 7.6%. However, excluding London and the South East, UK house prices increased by 6.5% in the 12 months to January 2015. On a seasonally adjusted basis, average house prices fell by 0.2% between December 2014 and January 2015. The data also shows that in January 2015, prices paid by first time buyers were 9.7% higher on average than in January 2014 while for existing owners prices increased by 7.8% for the same period. Scotland is seeing strong recovery with house prices up by 7.8% in the year to January 2015, up from 5.5% in the year to December 2014. It means that the index for Scotland is just 0.9% below the record level witnessed in August 2014 and prices are 1% higher than the pre-economic downturn peak of June 2008. Adrian Gill, director of Your Move and Reeds Rains estate agents, believes that more needs to be done to keep the property market recovery on track as it is clear that rates of annual growth have slowed across the board in England and Wales. ‘After storming ahead of the rest of the country in the whirlwind of 2014, conditions have calmed in London and the South East. The capital has already had the first taste of added pressure placed on prime property in the form of revised Stamp Duty, and the £1.5 million to £5 million slice of the market has also been hit by cold feet in the run up to the general election with the threat of a potential mansion tax,’ he said. ‘This let up of high end activity has brought down the average London house price, but it is regions with the lowest average property prices which are dragging their feet. The housing shortage may be propping up property price growth, but more needs to be done,’ he explained. ‘Measures like the Help to Buy scheme and reforming Stamp Duty have airlifted support to the bottom end of the market, but unless more new homes are built, the government are practically playing a zero sum game,’ he added. Nicholas Leeming, chairman of national estate agents Jackson-Stops & Staff, said it shows that the popular Help to Buy schemes must continue. ‘The ONS figures show that, while there is still some pre-election nervousness amongst buyers of higher value properties, the majority of the UK housing market… Continue reading
Miami continues to see steady growth in its residential property market
Median residential sales in Miami, one of the US’s most dynamic real estate markets, continued rising last month and have now been increasing for more than three years. Indeed the latest figures from the Miami Association of Realtors shows that single family home sales registered double digit growth in February and set an all-time Miami annual record in 2014, up 14.2% compared to February 2014. Existing condominium sales posted the second best year in Miami history in 2014 despite an increase in new condo construction and rose 1.4% from February of last year. Combined, Miami-Dade County residential real estate sales increased 6.8% compared to the same time period in 2014. ‘Miami residential home sales continue to grow at a moderate rate. Seller confidence and buyer demand in the Miami real estate market is leading to more active listings and higher sale prices,’ said Christopher Zoller, the association’s residential president. The data also shows that family home prices increased again in February but remain at affordable 2004 levels despite more than three years of consistent year on year increases. Condo prices also increased in February 2015, marking 44 months of growth in the last 45 months. The median sale price for single family homes increased 7.9% to $245,000 in February 2015 from $227,000 in February 2014. The average sale price for single family homes increased 4% to $431,746 last month from $415,312 during the same time period last year. Compared to February 2014, the median sale price for condominiums increased 6.8% to $189,000 from $177,000 a year prior. The average sale for condominiums increased 8.4% to $365,856 from $337,382 in February 2014. Miami single family homes and condominiums continue to sell close to asking price, reflecting a strong consumer demand. The median number of days on the market for single family homes sold in February 2015 was just 46 days, a decrease of 2.1% compared to the same period in 2014. The average percent of original list price received was 94.6%, down a negligible 0.6% from a year earlier. The median number of days on the market for condominiums sold in February 2015 was 65 days, an increase of 14% compared to the same period in 2014. The average percent of original list price received was 93.3%, a 1.8% decrease. Cash sales in Miami increased relative to last month, but are down compared to the same time period last year. Access to mortgage loans for condominium buyers remains limited. The lack of Federal Housing Administration loans for a large number of existing Miami condominium buildings is preventing further market strengthening. In Miami-Dade County, 58.8% of total closed sales in February 2015 were all cash transactions, up from 57.2% from the previous month. Cash deals in Miami are down relative to February 2014 when 62.5% of transactions were all cash. Miami condominiums comprise a large… Continue reading
