Tag Archives: finance
Majority of Americans believe in home ownership and are positive about the market
The majority of people in the United States believe that buying a home is a good financial decision, that now is a good time to buy and that they could sell their home for at least its initial purchase price. The survey from the National Association of Realtors which measures consumers' attitudes and concerns about housing issues in the nation's 50 largest metropolitan statistical areas, found that more than eight in 10 Americans are positive about the housing market. Some 68% believe that now is a good time to buy a home, 71% that they could sell their house for what they paid for it, a jump of 16% compared to 2013, the data shows. When asked for reasons about why home ownership matters to them, respondents’ answers have not changed significantly from past years. Building equity, wanting a stable and safe environment, and having the freedom to choose their neighbourhood remain the top three reasons to own a home. ‘Home ownership is part of the American Dream, and this survey proves that dream is alive and thriving in our communities,’ said NAR president Chris Polychron. The research also found that the number of renters who are now thinking about purchasing a home has increased since the last survey in 2013, up from 36% to 39and 61% said that owning a home is a priority for their future. According to the survey 80% of respondents believe that pre-purchase counselling programmes and classes are very or somewhat important. Indeed, 45% of home owners who said they did not take a counselling programme reported they would have taken part in one had it been easily available to them. Attitudes about the housing market have improved in recent years and 49% of respondents indicated that they feel activity in the housing market has increased in the past year, compared to 44% in 2013 and 12% in 2011. The study shows that 89% expect home sales in their area to either increase or remain the same. Concern about foreclosures has also declined, with only 15% of respondents indicating that foreclosure is a major concern. In addition to improved attitudes about the housing market, survey participants also showed an improved outlook regarding the economy. Only 36% think that job layoffs and unemployment are a big problem, a substantial drop from 45% in 2013. Perceived obstacles to home ownership have remained mostly unchanged compared to recent years and 78% of respondents pointed to college debt and student loans as the main obstacle to making a home purchase affordable. On top of this 76% said they have a full time job but still did not make enough money to purchase a home while 74% believe they do not have enough money for a down payment and closing costs. As the market has improved, concern about the cost of housing has increased. Two thirds of survey participants said that home prices are more expensive than they were a year ago. There is… Continue reading
Emerging prime market in London has a quiet 12 months
Property prices in South West London were down 0.5% in the third quarter of 2015, compared to last quarter and by 1.08% compared to the same period last year, new data shows. The Emerging Prime Index from Douglas & Gordon also shows that larger houses priced over £2 million experienced a plateau as the market continued to digest stamp duty rises from the end of last year. However, properties priced below £900,000, which benefitted from price rises due to stamp duty changes, showed signs of slowing following a firm first half of the year but remained robust overall. The index report says that buyer expectations around interest rate rises caused greater price sensitivity, which also impacted the market. However in some areas where houses were priced under £2million, for example between the commons in Battersea, a 10% price reduction in certain instances ended the stand-off between buyers and sellers and generated more offers. Meanwhile the emerging prime rental market in saw a mixed performance in the third quarter. Flats remained in demand, but there were pockets of extreme weakness in the market for houses. The report explains that as corporate budgets remain tight, some companies have stopped relocating employees and their families. This slowdown in house sales has had a knock on effect on rentals, which are in demand while the buying and selling process takes place. According to Ed Mead, the firm’s executive director, London’s emerging prime market has had a quiet 12 months driven by the ongoing impact of stamp duty changes on larger properties and expectations around interest rate rises. ‘However it is our view that the current slowdown will settle as emerging prime remains an attractive offer to foreign buyers. The current global economic instability reinforces our prediction that interest rates will remain at today’s levels for the foreseeable future,’ he said. ‘It’s interesting to see the rental market for houses seriously weaken as corporate budgets continue to be squeezed and French families in particular are noticeable by their absence. It gives rise to the question whether 30 something professional sharers could be the future given a changing demographic,’ he added. Continue reading
Prices continue to fall slightly in Dubai and Abu Dhabi, index data shows
Residential property prices in Dubai have fallen by 9.9% year on year and 0.75% month on month while rental prices are also down, according to the latest index data. A breakdown of the figures from the REIDIN index shows that apartment prices fell 10.4% year on year and are down 0.55% month on month while villa prices fell 8% year on year and 1.45% month on month in August. On the sales front apartment transactions were down for both apartments and villas. Month on month rents fell by 0.76% and 1.4% year on year, the data also shows. Apartment rental prices increased 1% compared with July but are 1.1% below August 2014 while villa rental priced fell 0.6% month on month and are down 2.9% year on year. In neighbouring Abu Dhabi property prices decreased 0.17% month on month and are down 3% year on year. Apartment prices registered a 0.46% decrease in August 2015 and are down 3.7% year on year while villa prices increased by 0.14% month on month but are down 2% compared to the previous year. Rents fell 0.23% month on month but are up 0.5% compared to August 2014. The data shows that for apartment rental prices fell 0.22% month on month and are down 0.8% year on year while villa rental prices fell 0.04% month on month and are up 2.2% year on year. Meanwhile, data from the Dubai Land Department suggests that the market is still attracting international buyers. Foreign investment into the property sector across Dubai increased to Dh53 billion in the first half of 2015. In Abu Dhabi a new decree has been issued to regulate and improve transparency in the emirate's real estate sector, requiring brokers and developers to be licensed and introducing rules to protect buyers of projects that are not yet completed. The rules, due to come into being soon, cover property advertising and marketing and introduce a means for complaints to be submitted and resolved more easily. All real estate developments must be registered with the government along with sales transactions listing the buyer. It means that new developments cannot be promoted or sold until they receive government approval and for unfinished projects, payments by buyers will be held in a separate, ring fenced account, while brokers will not be allowed to represent more than one party in a single transaction. Continue reading
