Tag Archives: european
Miami real estate market goes from strength to strength, latest data shows
The real estate market in Miami, one of the most popular US locations for overseas buyers, is going from strength to strength with properties selling fast and prices increasing. October marked more than four years of consistent monthly median sales price increases for both single family homes and condominiums, according to the latest data from the Miami Association of Realtors. The data also shows that the median sales price for single family homes increased by 10.4% year on year from $240,000 to $265,000. However, single family home and condominium prices remain at 2004 levels despite four years of consistent year on year increases. The median sales price for existing condominiums increased 8.1% in October to $200,000 from $185,000 a year ago. Miami-Dade County condo prices have risen in 52 of the last 53 months, a period stretching nearly four and a half years. ‘Miami real estate continues to attract international buyers from all over the world as well as a growing number of domestic consumers,’ said Christopher Zoller, the association’s residential president. ‘South Florida offers world class amenities, a top-tier arts and cultural epicentre, a diversified economy and more. The strong demand is leading to fewer days on the market for Miami single family homes while buyer offers are near asking price,’ he added. The average percent of original list price received for single family homes was 95.6% in October 2015, an increase of 0.3% from a year earlier. The median number of days on the market for Miami single family homes decreased 7% to 40 days in October 2015 from 43 days in October 2014. The median number of days on the market for condominiums sold in October 2015 was 59 days, a 1.7% increase from 58 days in October 2014. The average percent of original list price received was 93.8%, a 0.1% year on year increase. Total existing Miami-Dade County residential sales, including single family and condominiums, were consistent with historical averages despite experiencing a slight decline of 5.6%, from 2,712 sales in October 2014 to 2,559 last month. Single family home sales decreased by 4.4% year on year in October, from 1,204 to 1,151. Existing condominiums, which are competing with a significant rise in supply of new construction properties east of Interstate-95, had 6.6% fewer sales in October, decreasing from 1,508 to 1,408. The report points out that in addition to increased sales of new construction properties, Miami existing condominiums have been impacted by a lack of access to mortgage loans. Of the 8,523 condominium buildings in Miami-Dade and Broward Counties, only 23 are approved for Federal Housing Administration loans, down from 29 earlier this year, according to statistics released earlier this year from the Florida Department of Business and Professional Regulation and FHA. It adds that a new FHA policy, however, should qualify more South Florida condo buildings. Earlier this month the FHA announced plans to streamline the condominium recertification process, expand its definition of acceptable owner-occupied units to include second homes… Continue reading
Landlord sentiment survey reveals impact of tax changes for buy to let
The UK Government’s reduction of landlord buy to let tax relief looks set to have an impact with landlords in the private rented sector looking to sell up, according to new research. The latest sentiment survey indicates that the tax changes, announced as part of the Summer Budget, are proving a major concern for buy to let investors. Currently, 9% of landlords think it’s a good time to sell up, with the tax reforms influencing their decision more than any other factor. Indeed, according to the survey from lettings agents Your Move and Reeds Rains, many fear letting out a property will become far less profitable when the reforms start to come into force in April 2017, and they are now considering leaving the sector as a result. This loss of enthusiasm is even dampening the optimism of the 31% of landlords who think that now is a good time to buy rental properties and 44% believe investing in buy to let property is more complicated than it was six months ago. The survey report says that this is due to more rigorous regulation, also introduced as part of the Budget, which includes requirements for landlords to check their tenants’ immigrations status before they let their properties. Some 19% of landlords are daunted by this task, and now feel unequipped to let out their houses without the support of letting agents to manage their investment. The survey also shows that 24% of landlords believe the legislation on letting out properties has become more confusing, with 11% feeling that they don’t fully understand the current regulations. These changes are denting landlord confidence, and general disenchantment with the letting industry was an important factor for 23% of landlords who think now is a good time to sell. ‘Landlords could be forgiven for feeling a little deflated at the moment and its worrying to see this may motivate many to reconsider their investment. The Government’s tax changes appear to be making investing in buy to let less attractive because of the seemingly smaller profits margins on offer in the future,’ said Adrian Gill, director of Your Move and Reeds Rains. He pointed out that if a tenth of landlords do decide to leave the industry, this would seriously shrink the number of properties available for tenants. ‘At a time when tenant demand is only rising, shorter supply will only translate into increased rents. This may mean landlords are underestimating the likely pace of future rent rises,’ he explained. ‘The government needs to cut the red tape involved in providing homes for renters if they hope to maintain a healthy supply of rental properties. With the Bank of England keeping a wary eye on the buy to let market, further regulatory interference may only make landlords’ and tenants’ lives harder. We need landlords to stay in the market and invest further in the sector,… Continue reading
Property market recovery in the Alps spreads out from top resorts
The recovery in the Alpine residential real estate market, led by the ultra-prime resorts, has spread to the rest of the region with infrastructure investment spurring new development, according to a new report. British buyers are returning as a weak euro poses buying opportunities in France, Austria and Italy but a strong Swiss franc has made property in Switzerland more expensive for foreign buyers, says the report from Savills World Research and Alpine Homes. Courchevel 1850 tops the Savills ultra-prime ski resorts index with typical prices of €31,340 per square meter for the best properties. The French resort is followed by the Swiss resorts of Gstaad, St Moritz, Zermatt and Verbier at between €26,450 and €31,220 per square meter. In spite of limited price growth, a strong Swiss franc has pushed these markets up the rankings in currency terms, the report explains. In North America, only Vail is on par with the top European competition at €25,200 per square meter. ‘A home in a top tier Alpine resort is a key component of global property portfolios for the world’s wealthy. A property in Courchevel 1850, Gstaad or St Moritz complements a city residence in London, Paris or Moscow,’ said Paul Tostevin, associate director of Savills World Research. According to Jeremy Rollason, managing director, Alpine Homes, 2015 has been a tale of two currencies for UK buyers in the Alps. ‘The de-peg of the Swiss franc caught markets off guard, but sterling has since recovered and now trades within a 5% range of the pre-January 2015 exchange rate,’ he said. ‘The weakening euro has helped buyers in euro denominated countries. Currency swings have the effect of either suppressing or stimulating markets through affordability, but the net effect has little influence on property values per se,’ he added. The report shows that buying activity in the Swiss resorts cooled in 2015 with foreign buyers, particularly important to the top end of the market, impacted by the strong Swiss franc. However, despite limited supply of second homes, investment in infrastructure continues and the cache of Swiss resorts remains. Grimentz gained a new lift in the 2014/2015 season linking to neighbouring Zinal and new apartment schemes have followed. La Tzoumaz is also set for revival thanks to a planned lift upgrade, improving connectivity with neighbouring Verbier. Villars, a year round resort with high quality international schools, has seen high levels of new supply in recent years and has suffered from poor snowfall. This has had some impact on pricing and, for those who shop around, there are deals to be done. Prime apartments here trade at between CHF10,000 and CHF12,000 per square meter. The Austrian Alpine resort market has remained strong on the back of a vibrant local economy, which has generated house price growth nationally of 41% since 2008 and the report says that Austria continues to offer excellent value for money compared to the more established French and Swiss resorts. Committed investment in resort… Continue reading
