Tag Archives: crisis
Miami saw record demand for property in 2014
The Miami real estate market continued to perform robustly in the fourth quarter of 2014 due to renewed consumer confidence and increasing demand from both domestic and international buyers, according to the latest monthly index report. The median sales price for single family homes increased to $246,140 in the fourth quarter, a 4.7% jump compared to the same period last year, the data from the Miami Association of Realtors shows. The median sale price for condominiums increased 8.6% to $190,000 in the fourth quarter compared to a year earlier. Miami-Dade County has now seen 12 consecutive quarters of growth for both single family homes and condominiums. ‘We expect Miami home prices to continue to increase in 2015 but at a more moderate rate. Limited supply and strong demand for single family homes is still reflective of a seller’s market,’ said Christopher Zoller, the association’s residential president. ‘There is also strong demand for both new construction and existing condominiums, so we will continue to see price growth for residential properties in Miami-Dade,’ he added. Compared to the fourth quarter of 2013, the average sales prices for condominiums in Miami-Dade County increased 18.5% to $375,269. The average sales price for single family homes decreased 2% to $394,095. Sales of single family homes, which set an all-time record for all of 2014, increased 7.7% to 3,426, while condominiums decreased 3.3% to 3,981 compared with the same period in 2013. ‘Much of the increase in single-family home sales activity is due to consumer confidence. Many buyers who were staying on the side lines are now buying. Huge gains in job growth and more solid economic indicators are resulting in more consumers returning to the housing market,’ explained Carlos Gutierrez, the 2015 president-elect of the association. Home and condominium listings also increased in the fourth quarter of 2014, up 3% in the fourth quarter of 2014 compared to the same period last year. New condominium listings increased by 4.2%. At the current sales pace, the number of active listings represents 5.6 months of inventory for single family homes and 8.4 for condominiums. Compared to the fourth quarter of 2013, the month’s supply of inventory for condominiums increased 19.7%. The inventory for single family homes decreased 0.2%. A balanced market between buyers and sellers offers between six and nine months of supply inventory. The median days on the market of single family home listings during the fourth quarter was 45 days compared to 40 days during the same period last year, an increase of 12.5%. Similarly, the median days on the market for condominium listings were 58 days compared to 47 last year, an increase of 23.4%. In the fourth quarter of 2014, some 55% of closed sales were all cash compared to 60% a year ago. All cash sales were 41.4% of single family home closings and 66.9% of all condominium sales. Since nearly 90% of foreign buyers pay cash, this reflects Miami’s top position as a prime… Continue reading
Property markets varying across the UK, latest RICS survey shows
Supply and demand varied across the UK residential property market in January and 49% more London surveyors saw prices fall in January 2015 according to the latest monthly index. Scotland and Northern Ireland’s housing market outperformed the rest of the UK in January, with more buyer enquiries, stronger price growth and higher confidence in the outlook, the survey from the Royal Institution of Chartered Surveyors (RICS) shows. While nationally, the number of potential new buyer enquiries fell for the seventh consecutive month, Scotland saw the greatest buyer interest with several respondents suggesting the new Land and Buildings Transaction Tax (LBTT) will prompt more first time buyers to get on the property ladder. Meanwhile, Northern Ireland’s housing market witnessed the strongest price momentum for the fifth consecutive month, with 47% more respondents reporting increases in prices. However, RICS says that the national results, which are based on England and Wales only, continue to signal a cooling market and price growth has all but levelled off with just 2% more surveyors expecting prices to increase over the next three months, its slowest pace since May 2013. The survey shows that within England, London market conditions continue to deteriorate with prices, buyer enquiries and sales falling. Some 49% more respondents saw prices in the capital decline and the short-term confidence outlook is negative, despite the longer terms sales outlook being more upbeat. In the lettings market 19% more respondents reported a further rise in tenant demand during the three months to January and while supply appears to be dipping once again, there is anecdotal evidence to suggest that some new build rental properties are coming to market and surveyors’ rental growth expectations now stand at 4.6% per annum over the course of the next five years. Despite a month in which mortgage approvals fall to their one of their lowest levels, the number of agreed sales showed a slight increase in January, up from 19.1 to 19.7, and the 12 month member forecast is more optimistic around activity levels with 48% of surveyors still expecting sales to rise. ‘The changes to stamp duty and pending introduction of LBTT in Scotland are, to varying degrees, providing an incentive to first time buyers, but there remain a number of challenges to market, such as ongoing affordability constraints, lack of stock and an air of caution in the run-up to the general election,’ said Simon Rubinsohn, RICS chief economist. ‘Overall, while the RICS lead indicators suggest the level of house building looks set to increase over the course of 2015, the volume of home starts will still fall considerably short of the number of new households being formed, let alone making a dent in the historic shortfall of housing across all tenures,’ he added. Continue reading
Home repossession in UK down 26% in 2014, year on year
The number of home repossessions in the UK fell 26% in 2014 compared to the previous year, the lowest since 2006, according to the latest data from the Council of Mortgage Lenders (CML). Out of the 21,000 total number of repossessions, 16,100 were on owner occupied properties, and 4,900 were on buy to let properties, the data also shows. At 0.3%, the repossession rate on buy to let mortgages was higher than the 0.17% on owner occupier loans, despite the fact that the underlying arrears rate was lower on buy to let lending than on home owner lending. The CML said that this is unsurprising, as lenders offer extended forbearance to owner occupiers to help them get through periods of financial difficulty without losing their home. Some 1.05% of all mortgages were in arrears equivalent to 2.5% or more of the mortgage balance, down from 1.29% at the end of 2013 and 1.12% at the end of the third quarter of 2014. In numerical terms, this equates to 116,800 loans, down from 124,400 at the end of the third quarter, and 144,600 at the end of 2013. Within the total number of mortgages in arrears, there was also a decline in all of the individual arrears bands. Even among the heaviest arrears band, more than 10%, there was a 14% decline year on year to 24,700 cases at the end of 2014, some 5% lower than at the end of the third quarter. The two main traditional drivers of mortgage difficulty are income shocks such as unemployment and interest rates. The CML report points out that both factors are relatively benign at present, assisting the decline in both arrears and repossessions, supported by effective lender practices. Looking ahead, the CML and lenders are very aware that, at some future point, interest rates will rise, and that this will put increased pressure on some household finances. The CML and lenders urge customers to plan ahead for this, to reduce the risk of shocks whenever interest rates do eventually rise. ‘The relatively low rate of repossession among owner occupiers at around one in 600 mortgages last year, should help to reassure borrowers that, if they do face payment difficulties, lenders will work with them to try to resolve their problems. Repossession is only ever a last resort,’ said CML director general Paul Smee. No one should be lulled into a false sense of security that the current low interest rates we are experiencing will last forever, though. Rules are in place to ensure lenders assess future affordability, but these are not a substitute for careful borrowing,’ he explained. ‘It's essential for borrowers themselves to have one eye on the future. Think through any borrowing taken on now to ensure it will still be affordable if and when rates rise,’ he added. Continue reading
