Tag Archives: crisis
Miami residential real estate sales and prices rise at start of 2015
Miami single family home sales increased in January and all residential median sale prices continued their more than three years of consistent growth, according to the latest index. The Miami market is one of the most active in the United States and benefits from domestic demand as well as numerous overseas buyers who often pay cash for second or investment homes. Single family home sales, which set an all-time annual record in 2014, increased 6.5% relative to January 2014 while condominium sales, which posted the second best year in Miami history last year despite increased supply of new condo construction, decreased 15%. Overall, the data from the Miami Association of Realtors shows that combined, residential real estate sales decreased 6% last month compared to the same time period in 2014. ‘Miami is seeing a consistent and steady increase in single-family home sales while condo buyers are trending to the new coastal units becoming available,’ said Christopher Zoller, the 2015 residential president of the Miami Association of Realtors. ‘More houses are coming on the market, which means sellers are feeling confident about the housing market and strong sales show that buyers are also feeling confident,’ he added. Single family home prices, which again increased in January year on year, remain at affordable 2004 levels despite more than three years of consistent year on year increases. Condo prices also increased in January 2015, marking 43 months of growth in the last 44 months. The median sale price for single family homes increased 5.6%, up to $237,500 in January 2015 from $225,000 in January 2014. The average sale price for single family homes decreased 4% to $392,172 last month from $408,626 during the same time period last year. Compared to January 2014, the median sale price for condominiums increased 1.3% to $188,500 from $186,000 a year prior. The average sale for condominiums increased 3.2% to $372,978 from $361,282 in January 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 January 2015 was just 51 days, an increase of 10.9% compared to the same period in 2014. The average percent of original list price received was 94.3%, down a negligible 1.2% from a year earlier. The median number of days on the market for condominiums sold in January 2015 was 66 days, an increase of 17.9% compared to the same period in 2014. The average percent of original list price received was 93%, a 3.2% decrease. The report points out that cash sales in Miami continue to decline as more financing becomes available. Access to mortgage loans for condominium buyers, however, 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, 57.3% of total closed sales in January 2015 were all-cash transactions, compared to 61.9% in the same time period… Continue reading
House price growth optimism slows in the UK
The majority of households in the UK perceive that the value of their home rose in February but this level of optimisim is moderating, according to the latest house price sentiment index. Some 19% of the 1,500 households surveyed across the UK said that the value of their home had risen over the last month, while 6% reported a fall, the data from the Knight Frank and Markit Economics report shows. This gave the HPSI a reading of 56.5, the twenty third consecutive month that the reading has been above 50 but February’s index represents the lowest perceived rate of price growth since August 2013. Households in 10 of the 11 regions covered by the index report that prices rose in February, with Scotland at 49.4 the only exception. This is the first time any region within Great Britain has reported a price fall in 18 months. The future HPSI, which measures what households think will happen to the value of their property over the next year, fell again in February to 68.2, down from 69.5 in January. This is the third consecutive monthly fall in house price expectations across the UK and the lowest reading since August 2013. The future HPSI stands well below its record high of 75.1, which was seen in May 2014. Households in the South East at 73.8 expect the strongest price rises over the next 12 months, followed by those in the East of England at 72.9 and London also at 72.9. However, households in Scotland still expect average prices to rise over the coming 12 months with a level of 61, despite a perception that prices fell in February. ‘The easing in house price sentiment indicates that the market is in for a steadier year than 2013 or 2014. While buying intentions are relatively high, there is less conviction that prices will rise strongly this year. Just 43% of households expect the value of their home to rise over the next 12 months, compared to 55% in February last year,’ said Grainne Gilmore, head of UK residential research at Knight Frank. ‘The moderation in sentiment comes despite the prospect of a prolonged period of ultra-low rate inflation and low unemployment. However new mortgage rules and affordability constraints in some parts of the country are likely to weigh on price growth. In the shorter-term, many households are focussing on the election, the outcome of which could change some household finances if taxes or benefits are reformed,’ she added. According Tim Moore, senior economist at Markit, despite a sustained retreat in recent months, the latest survey indicates that overall house price sentiment remains at an elevated level by historical standards. ‘Around six times as many UK households forecast a rise in their property value during the year ahead as those that expect a decline. Improving mortgage availability, rising consumer confidence and a reduced likelihood of impending interest rate rises all look set to support UK property prices over the course… Continue reading
UK property sales down 1.4% in January, latest data shows
UK property sales fell in January, with the seasonally adjusted estimate for the month down by 1.4% compared to December 2014. The latest data from HMRC shows that there were 97,320 residential transactions and confirms that in recent months the trend in seasonally adjusted transactions has been on a slight downward trend. In January 2015 the number of non-adjusted residential transactions fell compared with December 2014, and was also lower compared with January 2014. ‘This is usual during this month of the year, although the number of non-adjusted residential transactions was also lower compared with January 2014. Please note that the figures for the two most recent months are provisional and therefore subject to revision,’ an HMRC spokesman said. The figures are based on HMRC's Stamp Duty Land Tax (SDLT) database, which records the information submitted by property purchasers on the Land Transaction Return. The data also shows that there has been an increase in the number of non-residential transactions. The seasonally adjusted estimate for January 2015 is 2.1% higher than in December 2014, and 8% higher compared with January 2014. ‘Seasonally adjusted transactions of non-residential property have increased slightly over the year. Non adjusted transactions have seen some monthly peaks and falls during the last financial year, this can be expected due to the seasonal nature of purchases,’ the spokesman added. Peter Rollings, chief executive officer of Marsh & Parsons, explained that while property sales may have faded slightly in January, buyer demand is still strong. 'New shades of regulation in the mortgage market have slowed the process, but they’ve made it more robust too and borrowers and lenders are benefiting from more thorough and effective affordability checks,' he said. 'As a result, the buyers who have their finances in place are eager to move quickly. January has seen a boost in agreed sales, which has firmly set the ball rolling for 2015, and this will only gather faster momentum during the spring, typically one of the most popular times to move house when these completions come to fruition,' he pointed out. 'Generous mortgage rates are giving borrowers more room for manoeuvre than ever before, and reduced stamp duty costs are another incentive greasing the wheels of activity at the lower end of the housing market, helping consumer confidence speed up. After the market re-adjustment we’ve witnessed recently, price growth will soon start ploughing forward again, although likely at a slower stride than last year,' he added. According to Adrian Gill, director of Your Move and Reeds Rains estate agents, the UK housing market is temporarily treading water at the higher end, but fast moving in areas where price growth has been more modest, and where cheaper properties are within reach of new buyers and borrowers who can access Help to Buy. ‘London has long been the propeller driving forward growth, but after cruising ahead at full speed in 2014, the London property market has run aground momentarily. This… Continue reading
