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Brazilians search the most for property in Miami, new research shows
Potential buyers from Brazil are leasing investment interest in the Miami real estate market which leads the United States in international property sales. It again led all foreign countries searching for South Florida real estate on the Miami Association of Realtors website in February 2015. The South American country, which topped all global consumers searching Miamire.com in the same period last year, has regularly ranked among Miami’s top foreign buyers. According to the association the distinction is significant considering Miami has the highest concentration of foreign born residents of any major US city and leads the nation in international real estate sales. In 2014, Brazilians registered 11% of all South Florida international real estate deals. Brazil had the third most property transactions in Miami and Broward Counties among all global consumers, trailing only Venezuela at 16% and Argentina at 12%. Brazilians spend the most on South Florida properties among foreign buyers, paying an average of $495,000. On average, Miami’s international buyers paid $444,000 per purchase, compared to $245,000 state wide. ‘Miami is an international city with world-class amenities, and that’s a big draw for Brazilians,’ said Christopher Zoller, 2015 residential president of the Miami Association of Realtors. ‘Typically, the Brazilians moving to South Florida are upper middle class families who want to enjoy their prosperity earned in Brazil as professionals and entrepreneurs,’ he added. A breakdown of the February figures shows that after Brazil the next most popular nationality searching for property was Colombians, followed by Venezuelans, then Canadians and then Indians. Searches from Argentina, the UK, Russia, the Philippines and Italy completed the top 10. When it comes to domestic searches, the most came from California, followed by Georgia, then Texas, New York, Illinois, Michigan, Pennsylvania, Virginia, Ohio and North Carolina. Nationally, Miami is consistently one of the top markets for foreign countries searching for property in the US In February Miami ranked as a top five market for 12 of 20 foreign nations searching for real estate on Realtor.com and Realtor.com International. Miami registered as a top market for real estate consumers in Canada, Germany, Brazil, Mexico, France, Italy, Netherlands, Russian Federation, Spain, Sweden, Switzerland and South Africa. Continue reading
Economists forecast property price growth of just 1.5% in UK, fall in London
UK house prices will grow only by 1.5% in 2015 but they are set to fall by 3.6% in London before growing again but slowly over the next five years, according to economists. The report from the Centre for Economics and Business Research (Cebr) is an upward revision from its previous report in January when it forecast a fall of 0.6% in prices this year. It said that the impact of December’s stamp duty changes has been felt sooner than expected, with some buyers putting cash saved towards a deposit but while expectations have been revised up it is a more subdued outlook for London. The property market in the capital continues to show signs of cooling. Average house prices in London are expected to decline by 3.6% over 2015 but the report also points out that they increased by 17.4% in 2104. Cebr continues to expect London house prices to underperform the rest of the UK this year, following years of over performance. It points out that the strength of sterling against the euro, fears of a mansion tax and hefty new stamp duty rates on high value properties have all hit housing demand from overseas buyers. In 2015, for the first time since 2009, house price growth will be stronger outside the capital than in London itself. Leading indicators such as fewer new buyer enquiries and properties taking longer to sell already point to falling prices in the capital. Outside of the capital, the decline in overseas interest in UK property will be much less strongly felt. At the same time, most home buyers have benefited from December’s stamp duty changes as well as an improving labour market which has boosted consumer spending power. The YouGov/Cebr Household Economic Activity Tracker (HEAT) shows that consumer expectations for property price growth across the UK have been picking up in recent months after declining in October, something that is feeding through into rising consumer confidence in the run-up to the general election. ‘Outside of London, the outlook for house prices this year has improved after a few months when the market appeared to be coming off the boil. December’s stamp duty changes, as well as rising household incomes, are lifting prices in many parts of the UK,’ said Nina Skero, Cebr economist and main author of the report. ‘In London, however, we expect prices to decline by 3.6%, driven by a significant weakening at the prime end of the market. A potential mansion tax, reduced overseas interest and hefty new stamp duty rates have hit demand for high value property,’ he added. Continue reading
Average UK home changes hands every 23 years, new research shows
The average home in the UK changes hands every 23 years and while this may seem not very often it is almost three times longer than in the 1980s, new research shows. The low housing turnover is driven by people buying their first homes later, a larger private rented sector and the baby boomer ‘hoarding effect’, according to the annual report from the Intermediary Mortgage Lenders Association (IMLA). The report, which examines trends in the mortgage and housing markets in order to assess the strength of the post-recession recovery, also shows that annual turnover of the private housing stock fell from over 12% to 4.5% over the last three decades. As a result, IMLA’s analysis indicates the average home currently changes hands once every 23 years compared with every eight years during the 1980s. The IMLA report argues that low housing turnover is driven by a combination of people buying their first homes later; by a larger private rented sector where turnover is lower; and by the baby boomer ‘hoarding effect’ where middle aged home owners are staying put, tying up a large part of the housing stock. These factors are likely to keep turnover down for the foreseeable future, potentially limiting mortgage lending and restricting access to existing properties. IMLA’s analysis also shows the estimated contribution of mortgage finance to the total value of UK housing transactions hit a new all-time low of 41.7% last year. It means just £4.17 of every £10 spent on house purchases in 2014 was funded by mortgages while cash or equity made up £5.83 or 58.3%. Despite forecasting a slight increase in gross mortgage lending over the next two years, the IMLA expects the estimated contribution of cash, including deposits and cash purchases, to housing transactions will exceed 60% for the first time on record by 2016. ‘These figures paint a picture of a housing market where turnover has drastically slowed in the last thirty years. Quite simply, in the absence of a sustained rise in housebuilding and improved affordability and turnover, the fact that properties are coming onto the market less frequently severely limits the scope for would-be first time buyers to graduate to owning their own homes,’ said Peter Williams, IMLA executive director. ‘Inertia in the property market spells danger for future owner-occupation levels, and the growing influence of cash and equity is sowing the seeds of a permanent social divide. Having said that, we will see some continued growth in mortgage lending and as the market stabilises and wages rise, we may also start to see affordability improving,’ he added. The report also assesses how the mortgage market recovery has been tempered in the last year by worsened housing affordability and tighter lending restrictions since April’s implementation of the Mortgage Market Review (MMR) and October’s macro-prudential changes prompted by the Financial Policy Committee (FPC). While gross mortgage lending was running 36% up year on year in January 2014, it was… Continue reading
