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Canadian property sales up for fourth month in a row
Nationally home sales in Canada have increased for the fourth month in a row, up 3.1% from April to May and prices are up 8.1% year on year. Actual, not seasonally adjusted, activity is now 2.7% above May 2014 levels although the he number of newly listed homes was little changed from April to May, according to the latest index data from the Canadian Real Estate Association. CREA said that the Canadian housing market remains balanced overall put national figures are being skewed by exceptional prices in Greater Vancouver and Greater Toronto. If these are excluded than the year on year price increase is just 2.4%. The data shows that national sales activity is at its highest level in more than five years and transactions were up from the previous month in about 60% of all local markets, led by increases in the Greater Toronto Area, Calgary, Edmonton, Ottawa and Montreal. One factor that could be responsible for the sales growth, however, is that “mortgage default insurance premiums increased at the beginning of June and this may have encouraged buyers to complete in May top beat the rise. Year on year price growth accelerated in May in all home categories tracked by the index with the exception of one storey single family homes. Two storey single family homes continue to post the biggest year on year price gains with a rise of 7.18% while the price of one storey single family homes increased by 4.11%, townhouse/row units by 4.09% and apartments by 2.91%. Annual price growth varied among housing markets tracked by the index. Greater Vancouver saw the biggest rise at 9.41% followed by Greater Toronto at 8.9%. Fraser Valley, Victoria, and Vancouver Island all recorded year on year gains of about 4% in May. The data also shows that price gains in Calgary continued to slow, with a year on year increase of just 1.21% in May. This was the smallest gain in more than three years and the eleventh consecutive monthly slowdown in year on year price growth. Elsewhere, prices held steady in Saskatoon and Ottawa, rose slightly in Greater Montreal and fell by about 3% in Regina and Greater Moncton. CREA chief economist Gregory Klump pointed out that sales in and around the Greater Toronto area played a major role in the monthly increase in May sales. ‘At the same time, the rebound in sales over the past few months in Calgary and Edmonton suggests that heightened uncertainty among some home buyers in these housing markets may be easing,’ he said. The number of newly listed homes was virtually unchanged, down 0.2% in May compared to April. The CREA report says that this reflects an even split between housing markets where new listings rose and where they fell, with little monthly change for new listings in most of Canada’s largest and most active urban markets. The national sales to new listings ratio was 57.6% in May, up from a low… Continue reading
Pay an extra 25% to buy a house in a popular London garden square
The average price of a home located on one of central London’s popular garden squares now costs above £2 million and commands a sales premium of 25% over a similar home nearby, new research shows. The study by residential estate agent Hamptons International analysed house prices in and around 64 of central London’s garden squares. The 25% premium for 2015 remains unchanged from 2014, although the average price of a home in a garden square rose 7% to £2,040,713, breaking the £2 million mark for the first time. In order to derive the premium, the analysis compared sales prices, taken over a five year period, of properties located on a garden square, compared to those within a 200 meter radius of a square. All prices were indexed forward to January 2015 values, to account for house price inflation. In 2015 a property situated on a central London garden square sells on average for £2,040,713 compared to £1,643,907 for a similar property within a 200 meter radius of the square. For houses the price differential is even greater. The average price for a house located on a garden square in 2015 is £5,022,221, compared to £3,320,582 for a house within a 200 meters radius of a square. ‘Growing house prices have seen the average home on a central London garden square break the £2 million mark for the first time. As well as the view of and access to shared resident only gardens, many of these homes are in the capital’s most desirable locations, with names such as Eaton Square or Chester Square recognised the world over,’ said Johnny Morris, head of research at Hamptons International. ‘While in part it is the address that purchasers are paying for, the size and quality of the property is also important and London’s garden squares are home to some of the finest examples of British architecture in the capital,’ he explained. ‘Overall it’s a combination of factors that accounts for the price premium buyers are prepared to pay for a home on a London garden square; namely setting, prestigious address and exceptional architecture,’ he added. Continue reading
Wealthy buyers returning to the Caribbean market
Wealthy British buyers who are feeling more confident about the economic outlook are returning to the luxury real estate market in the Caribbean, with Barbados proving popular again. Indeed, the luxury Royal Westmoreland resort in Barbados, which is popular with British footballers and celebrities, has reported the best sales period in more than 10 years, with $60 million of villa sales largely going to British buyers. The firm says that overall the appetite for overseas property is returning and Barbados is regarded as an appealing place to have a second home with $30 million of new villas now being built and another $30 million of homes in the next six to nine months. ‘This is the busiest period for me in 11 years at Royal Westmoreland. Everything we are building is for somebody who has purchased the property so we are not building anything speculative. We have seen a substantial turnaround from the previous five years,’ said Royal Westmoreland construction director Ian Putley. According to his colleague, sales Director Kim Goddard, Most of the sales are to British buyers who are feeling more confident about the economy back home and in the product that is Barbados. ‘They want a sure bet when it comes to making their lifestyle choice for a second home. This means built amenities, established vibrant community and lower risk on protecting resale values,’ she explained. The Royal resort, which is itself up for sale currently, with a price tag of $75 million, has expanded onto new land purchased in 2006 which covers 250 hectares and has planning permission for another golf course and hotel. The new collection of 31 lots are on a high ridge with views over the golf course and the southern stretch of the sought after west coast. Famous owners of homes at Royal Westmoreland include former cricketers Andrew Flintoff, Michael Vaughan and Ian Botham, golfers Ian Woosnam and Lee Westwood, boxer Joe Calzaghe and footballers Wayne Rooney, Andy Cole, Rio Ferdinand and Stuart Pearce. It is the only completed gated community in Barbados with a golf course and a beach club, and is a short drive inland from the Platinum Coast known for its white sandy beaches, chic restaurants and laid back beach bars. Wealth intelligence firm Wealth-X has just brought out a report saying that there is increased demand for homes in the Caribbean. It points out that while Caribbean luxury real estate values remain 10% to 15% below their 2009 highs, prime property sales increased by more than 10% in 2014. According to Wealth-X president David Freidman, the firm’s latest research shows that resurgent luxury real estate markets in the Caribbean, and specifically Barbados are in a good position to take advantage of long term growth trends in global ultra high net worth buyer demand for real estate. The report suggests that wealthy investors from China and Russia in particular are looking to buy in the Caribbean. They are looking to buy luxury real… Continue reading
