Tag Archives: crisis
Residential sales fall in Canada after previously setting all time monthly record
National home sales in Canada fell in May after setting an all-time monthly record the previous month with a decline of 2.8% recorded, the latest index data shows. The figures from the Canadian Real Estate Association (CREA) also show that the national average price has increased by 13.2% year on year but when Greater Toronto and Greater Vancouver are excluded this drops to 9.1%. Sales activity dropped in about 70% of all markets, led by those in British Columbia and Ontario where the number of homes listed for sale has fallen to multi-year or all-time lows. ‘National sales activity is still strong, even after coming off the record levels of the past couple of months. But, there are housing markets where sales continue to reflect a cautious mood among homebuyers and uncertainty about the local economy,’ said CREA president Cliff Iverson. According to CREA’s chief economist Gregory many of the housing markets in BC and Ontario that led the monthly decline in national sales are also places where months of inventory have fallen to all-time lows. ‘This suggests a lack of supply may be starting to rein in sales amid a continuation of strong housing demand,’ he explained. While nine of the 11 markets tracked by the index posted year on year price gains in May, price growth among housing markets continues to vary widely. Greater Vancouver recorded the biggest rise at 29.7% then the Fraser Valley at 31.7%. Next was Greater Toronto where prices rose by 15% year on year, while in Victoria they rose 13.9% and in Vancouver Island by 9.5%. By contrast, prices fell by 3.9% in Calgary and by 2.3% in Saskatoon. There were smaller year on year prices rises in other locations. In Regine they increased by 3.4%, in Ottawa by 1.3% and in Greater Montreal by 1.9%. Home prices in Greater Moncton recorded their tenth consecutive year on year gain, up 8.2%. The index report also points out that the national average price continues to be pulled upward by sales activity in Greater Vancouver and Greater Toronto, which remain two of Canada’s tightest, most active and expensive housing markets. The actual, not seasonally adjusted, national average price for homes sold in May 2016 was $509,460, up 13.2% year on year. However, if these two housing markets are excluded from calculations, the average price is a more modest $375,532 and the year on year gain is trimmed to 9.1%. But the report explains that even then, this reflects a tug of war between strong average price gains in housing markets around the GTA and in British Columbia versus flat or declining average prices elsewhere in Canada. Indeed, the average price for Canada net of sales in British Columbia and Ontario in May 2016 was down 0.7% year on year to $310,007. The index also shows that the number of newly listed homes fell by 3.2% month on month and new supply was down in about two thirds of all… Continue reading
One if five homes for sale in London is priced at £1 million or more
With property prices in London continuing to rise new research shows that one in five homes for sale are listed at £1 million or more. London is one of the most expensive cities in the world for property and the research from estate agent eMoov shows that 20% of all London properties currently listed for sale are priced at over a million pounds. The firm analysed current stock levels across all of the major portals, recording the total levels listed for each London borough, before comparing this to the level of stock listed for £1 million or more and also researched the same percentage of stock across the capital as a whole. The borough with the highest number of properties for sale at over £1 million was Westminster with 63%, followed by South Kensington and Chelsea at 62%. There is a considerable gap to the next highest which is Camden with 43%. In contrast in the boroughs of Barking and Dagenham there are no properties for sale for a £1 million or more and surrounding boroughs have very few. For example in Newham, Bexley and Waltham Forest only 1% of homes for sale are prices at £1 million or more and in Redbridge and Havering it is 2%, in Lewisham 3% and Greenwich 5%. ‘When people think of London they accept prices are through the roof. Even though the average house price in Barking and Dagenham is considerably lower than the London average at £253,000, it still trumps the UK average by tens of thousands of pounds,’ said eMoov chief executive officer Russell Quirk. ‘In a market as inflated as London where stock is scarce and demand is overwhelming, it's quite remarkable that there is still an entire borough without even one property at the £1 million mark or over,’ he pointed out. ‘With prices across London continuing to rise, surely it won’t be long before Barking and Dagenham will see some of its properties priced at £1 million or above. Despite this, our latest research shines yet another spotlight on how unaffordable London is from a property point of view,’ he explained. ‘When you consider that across a city as vast and as populated as London, one in every five properties will cost you a six digit price tag, it really is disheartening for the aspiring London home owner,’ he added. Continue reading
New Zealand seeing increasing number of new homes being built
Building consents for new dwellings are at a higher level in New Zealand than last year, up 12% in April compared with the same month in 2015. In seasonally adjusted terms the number increased by 6.6% but growth has eased in recent months, according to the data from Statistics New Zealand. However, the annual total is still at an 11 year high although most of the growth has been in Auckland and nearby regions, while Canterbury has decreased. The apartments component has been virtually unchanged over the past year, following strong increases during the previous three years. Houses, town houses, and retirement village units have continued to increase. The data also shows that the seasonally adjusted value of residential building work in Auckland grew 13% in the first quarter of 2016 quarter compared with the final quarter of 2015. ‘Auckland residential construction topped $1 billion for the first time in the March 2016 quarter, with another half-billion of non-residential work. Every week this quarter about $120 million worth of building work was put in place in Auckland,’ said business indicators senior manager Neil Kelly. Building and Housing Minister Nick Smith said the country has seen the longest and strongest period of growth in residential construction in its history with four consecutive years of 10% plus growth nationally and 15% plus growth in Auckland. ‘This is important because supply is at the core of New Zealand’s challenges around affordable, social and emergency housing,’ he added. The value of residential and commercial building work for the year to April of $17.6 billion is an all-time high and 14% up on the previous year. The sector is on schedule for 85,000 new homes to be built across New Zealand in this term of Parliament, up from 60,000 last term and for an all-time record of 36,000 homes being built in Auckland, which would be the largest in any Parliamentary term. The figures show a dramatic growth in building activity in the regions. This building boom began in Christchurch in 2012, spread to Auckland in 2014 and is now flowing to centres such as Whangarei, up 53%, Palmerston North up 57%, Queenstown Lakes up 40%. Activity is also up by 26% in Tauranga and in Hamilton while Auckland has seen growth of 15% but Christchurch is down 9%. ‘We are going to need to maintain this strong growth in building activity to keep up with New Zealand’s population growth, which is the result of record numbers of Kiwis coming home,’ said Smith. ‘We intend to continue to roll out a consistent and considered plan to improve housing supply and affordability,’ he added. Continue reading
