Tag Archives: facebook
Americans more confident about the nation’s housing market, new research shows
Overall Americans are more confident about the housing market than at the start of the year, according to the latest Zillow Housing Confidence Index. The index increased to 64.2 over the summer, up from 63.7 in January, and housing confidence increased among residents in 11 of the 20 major metro areas surveyed. The ZHCI, sponsored by Zillow and developed by Pulsenomics, is measured on a 0 to 100 scale, with readings above 50 indicating positive sentiment. The headline index is comprised of sub-indices which measure prevailing market trends and buying/selling conditions, expected changes in home values, home affordability, the value of home ownership and, household home buying plans and attitudes toward the social value of home ownership. But the analysis also reveals that consumers’ expectation is for more modest home value growth going forward are this is in line with Zillow's predictions for slower home value growth over the next year. The Zillow Home Value Forecast, which predicts home value growth of 3.1% through next August, is down from 6.6% over the past year. The report also shows that overall, housing confidence is higher among home owners than renters, likely owing to historically high rents and favourable home buying conditions. An analysis of data within the 10,000 completed survey questionnaires used to calculate the ZHCI reveals that younger renters are upbeat about their future home buying prospects. Among renters aged 18 to 34 some 82% said they were confident or somewhat confident that they will be able to afford to own a home someday, compared to 64% of those aged 35 to 49 and 48% of those aged 50 to 64. Then younger age group were also far more optimistic about future home value appreciation with 33% saying that they expected home values to rise more than 6% per year over the next decade, compared to 21% of the middle age group and 15% of the older age group. ‘It's heartening to see younger renters express so much confidence in their ability to buy a home in coming years, because today's renters by necessity are tomorrow's buyers,’ said Zillow chief economist Stan Humphries. ‘Cynics might argue that these results represent no more than youthful exuberance, or perhaps some naiveté, but that's missing the point. We need this generation to be confident and wanting to buy, regardless of the difficulties they face,’ he explained. ‘And there are difficulties, including saving for down payments in the face of high rents and high student debt burdens, uncertain job prospects among younger workers and limited entry-level home inventory. But optimism is a necessary first step, and indicates a desire among a very creative generation to find creative solutions that will enable them to achieve home ownership,’ he added. The report suggests that in some respects, younger potential buyer’ views toward housing may be more conventional than older generations. Some 65% said they agreed with the statement that owning a home is necessary to living a good life and is central to the American dream, compared… Continue reading
Survey suggests being a landlord is more stressful than it used to be
Being a landlord in the UK is becoming an increasingly stressful business with over half using their holidays to sort out issues, new research shows. Some 25% have found being a landlord more stressful than they had expected and 67% said they were more stressed than 12 months ago, according to a survey by UK Landlord Tax. The survey showed that 53% of landlords use up to 20% of their annual leave sorting out issues with their properties. Also 46% of landlords spent up to 20 hours a year on phone calls, negotiating with agents and tenants as well as sorting out insurances, house repairs and maintenance. Other contributing factors included late rent payments (58%), funding property maintenance and repairs (40%) and tax worries (38%). Expat landlords feel under the most pressure with 86% worried about the potential changes to personal allowance entitlement. However, those who had been landlords for 10 years or more felt under least pressure. Other issues and worries for all landlords included properties lying empty with no tenants in place (35%), not having enough time to deal with issues at the property due to work constraints (28%) and expensive agency fees (15%). Four legged friends were another ‘pet hate’ landlords had to tackle. While 60% of those surveyed said they don’t currently allow pets in their property, 5% discovered at the end of the tenancy that their tenants had been keeping pets without consent, and experienced some level of damage to the property. While 74% of those surveyed said they had no plans to stop letting out their property in the next 12 months, 51% said they didn’t expect to make any money in that time either. This ties in with figures from the National Landlords Association which revealed that 27% of landlords who let out a single property break even or run at a loss, meaning just a few unexpected expenses can leave them struggling. ‘Following the dramatic increase in landlords in the UK it’s not surprising that they are becoming more stressed. Letting properties is a serious business and with the number of so-called ‘accidental landlords’ increasing significantly it’s no surprise that landlords are feeling the pressure,’ said Simon Thandi, director at UK Landlord Tax. Continue reading
Prices of most expensive properties in London plummeting, new data suggests
House prices in London's most expensive areas are plummeting, sparking fears of a domino effect of house price falls across the UK, it is claimed. The latest data from Home.co.uk shows falls in six out of 10 of the UK's most expensive areas, all of which are in central London. Average sales prices fell by 8% in Belgravia over the 12 months to September 2014. Over the same period, prices fell in Westminster by 6.3%, in Soho by 5.7%, in South Kensington by 4%, in Chelsea by 3.5% and in Charing Cross by 2.7%. Tightening mortgage credit in the wake of the Mortgage Market Review as well as an increase in supply are among key factors in this price drop in the capital's most expensive, and arguably most overheated, property markets, according to the firm. House price inflation is now cooling across all of greater London. Across the capital region, the average asking price fell by 0.1% between August and September whilst average prices rose by just 0.2% across England and Wales. Thus far only the most expensive parts of London are suffering serious price deflation, but it may well spread. This latest trend in London's property market follows a period of dramatic increases in house prices in the capital, fuelled by low interest rates and foreign property investment. Prime property was the first segment to recover following the credit crunch in 2007. A wave of soaring prices then moved out from prime central London as buyers refocused on less expensive areas. The average asking price in London has risen by 9.8% in the last six months. Over the last year, some parts of the capital saw price rises far above the average of 19% for Greater London. In Stratford, the average sales price of a two bedroom property soared by 44.9% in the 12 months to September 2014 while in West Norwood, the same property type saw a price rise of 44.2% over the same period. Outside of the M25, only Slough showed comparable price appreciation. In the 12 months to September 2014, the average price of a two bedroom property in the Berkshire town rose by 44.3%. ‘Overall, it's been a simply staggering year for property prices in London. Some areas have far exceeded the 19% rise overall for Greater London, whilst others have underperformed relative to this figure,’ said Doug Shepherd, director of Home.co.uk. ‘The list of the top five locations reveals some jaw dropping gains. Moreover, it is highly likely that many owner occupiers in these locations earned less than their homes did over the course of the last year,’ he explained. ‘However, when prices rise at an unsustainable rate, boom can quickly turn to bust. Prime London prices are falling and the middle income areas that have seen the biggest price hikes this year are likely to suffer the same fate,’ he added. Continue reading
