Tag Archives: crisis
England sees 10% rise in new homes, still way short of demand
The number of new homes in England increased by 10% from 2012 to 2103, official figures show but experts are still warning that this is not enough to meet demand. The increase to 136,620 new homes still this leaves net house building in England 39% below the 2007/2008 peak of 223,530 new homes. The data from the Department for Communities and Local Government shows there were 130,340 new build homes, 4,470 from conversions and 12,520 from changes of use. There were also 1,330 other gains and a loss of 12,520 through demolition. The data also show that greater London has seen the faster progress with 12% annual growth in the number of net new homes built in the capital. A net 23,580 new homes built in London represent 17% of all those built in England in 2013/2014 with Newham and Southwark leading the way for new homes over the last year, seeing 1,970 and 1,650 extra homes respectively. Andrew Bridges, managing director of specialist London estate agents Stirling Ackroyd, pointed out that nothing else can solve a fundamental shortage of homes in the long run, apart from building more. ‘People are beginning to believe they could be better off at this point next year. But in terms of affording a home, the financial marathon is far from over and this is particularly true in our capital city,’ he explained. He pointed out that while it is encouraging to see such a pick-up for the new homes industry, even with 10% growth per year it would be 2020 before as many homes are being built each year as in 2008. ‘Accelerating this progress will be vital, with even more homes near transport and jobs. Nowhere is this squeeze more tightly felt than in London,’ said Bridges. Research by his firm shows areas in Southwark, Hackney, Tower Hamlets and Newham will lead the way for new homes over the next decade. ‘So the fact that two of these boroughs are already leading London’s home building effort is encouraging. But opportunities abound and the demand is there for hundreds of thousands of new homes,’ he said. ‘London’s economy is moving faster than ever, more than playing its part in the UK’s wider recovery. But keeping that dynamo spinning will require homes for the millions working to make that reality. Developers now appear to be rising to the challenge,’ he added. Continue reading
Median and average sale prices continue upwards in Miami, latest data shows
The performance of the Miami real estate market remains consistent with record activity in 2013 due to strong demand despite increased existing and new construction supply, it is suggested. Median and average sales prices continue to rise, according to the latest statistics from the Miami Association of Realtors. In the third quarter, the median sales price for homes in Miami-Dade County was $250,000, an increase of 8.7% compared to last year while the median sale price for condominiums rose 3.5% to $189,900. These third quarter price increases mark 11 consecutive quarters of growth for both single family homes and condominiums. ‘The Miami real estate market continues to attract the attention of both domestic and foreign buyers, fuelling solid growth and creating opportunities for both buyers and sellers, said Liza Mendez, chairman of the association’s board. ‘While there is more supply available than a year ago, there is still strong demand, and the growth of supply, new listings, sales and prices is more moderate, resulting in a more balanced market,’ she added. In Florida the state wide median sales price for single family existing homes in the third quarter was $182,000, up 4% from the same quarter a year ago, according to the latest housing data released by Florida Realtor. The median sales price for condominiums in Florida was up 6.9% compared to the same quarter last year at $139,000. Compared to last year, the average sales prices for single family homes and condominiums in Miami-Dade County increased 14.9% to $438,431 and 3.8% to $341,927, respectively. There were 7,632 homes and condos sold in Miami-Dade County during the third quarter of 2014, a decrease of 5% compared to the third quarter of 2013, when there was record sales activity. Sales of single family homes increased 0.2% to 3,552, while condominium sales decreased 9% to 4,080 compared with the same period in 2013. ‘In Miami, market performance continues to vary greatly depending on location, property type, price range and other factors,’ said Franciso Angulo, residential president of the Miami Association of Realtors. ‘While in most cases, increased supply is offering buyers more choices and less pressure, others are still experiencing significant competition and bidding wars,’ he explained. He pointed out that the Miami Association’s initiatives to increase inventory and focus on assisting members to get more listings has proven successful along with some additional distressed properties coming on the market. In addition, the fact that sales remain at historically strong levels while inventory is growing points to seller confidence. Sellers are listing properties for sale because they have confidence in the market, according to Angulo. Home and condominium listings also increased in the second quarter but by narrower margins. There were 6,237 new single family home listings during the third quarter, a growth of 5.1% relative to the same period last year. New condominium listings increased by only 1% from 8,282 in the third quarter of 2013 to 8,366 this year. At the current sales pace, current inventory represents 5.7 months of inventory for single family… Continue reading
US housing market not set to normalise for at least three more years
Real estate professionals in the United States, including economists, agents and investment strategists, don't expect the housing market to normalise for at least three more years. The majority of the panellists on the Zillow Home price Expectations Survey predict that home values will end 2014 up an average of 4.8% from 2013, to a median value of $176,760. On average, respondents said they expect home values to exceed their pre-recession peak in February 2018 and in the longer term, respondents are most concerned by low household formation rates, would be first-time buyers in a weak financial position and demographic changes that are affecting the housing market. So shifting demographics and would be first time buyers financially ill prepared to buy will continue to hold back the housing market over the next several years. However, despite these hurdles, nearly all of the 107 panellists surveyed said they expect the housing market to normalise within the next five years. The report suggests that people are delaying home purchases both for financial reasons, as high rents make it difficult to save, and because they are generally waiting longer to marry and have children. Also, because rent is so high, many renters are forced to find roommates to share the costs, and more than a third of U.S. adults are living with a roommate, up from a quarter in 2000. As a result, household formation rates are well below average, slowing the housing market's recovery. Additionally, those near retirement age are staying in their homes longer rather than selling and downsizing or renting. Those two demographic factors are contributing to a falling homeownership rate and tighter than normal inventory levels, respectively, and are among the reasons experts say the market is being held back from a full recovery. ‘We've reached a point in the recovery where the only real cure-all is time. The market remains very challenging for younger, first time home buyers who face an uphill battle saving for a down payment, qualifying for a mortgage and finding an affordable home to buy,’ said Zillow chief economist Stan Humphries. ‘At the same time, many older homeowners are trapped underwater or are unable to find buyers for their homes. But the landscape is slowly changing, as incomes begin to grow, negative equity fades and new households start to form. These shifts won't occur overnight, but they are happening. Patience will be a virtue over the next few years as we wait for these traditional fundamentals to more fully take hold in the market,’ he pointed out. Asked when they expect the US housing market to normalise, 30% of panellists said they expected the market to stabilise one to two years from now, and 40% said it would take three to five years. Almost 20% said they believe the market either already has returned to normal, or will in the next 12 months. Panellists said they expect US median home values to rise 4.8% in 2014, on average, to $176,760, and another 3.7% in 2015. Panellists… Continue reading
