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US pending home sales up for 19 months in a row
Pending home sales in the United States increased slightly in March for the second consecutive month and reached their highest level in almost a year, according to the latest index. The Pending Home Sales Index from the National Association of Realtors, a forward looking indicator based on contract signings, increased by 1.4% in March and is now 1.4% above March 2015. It means that after the slight gain, the index has increased year on year for 19 consecutive months and is at its highest reading since May 2015 and Lawrence Yun, NAR chief economist, said it signals a solid beginning to the spring buying season. ‘Despite supply deficiencies in plenty of areas, contract activity was fairly strong in a majority of markets in March. This spring’s surprisingly low mortgage rates are easing some of the affordability pressures potential buyers are experiencing and are taking away some of the sting from home prices that are still rising too fast and above wage growth,’ he explained. He also pointed out that in the short term, the healthy labour market and favourable borrowing costs should lead to sustained buyer demand and a durable pace of sales. However, Yun he believes that the consequences from a failure to construct more single family homes in recent years are starting to impact some top job producing markets, where endless supply shortages continue to limit choices for buyers and are driving up prices beyond what a growing share of households can comfortably afford. ‘Demand is starting to weaken in some areas, particularly in the West, where the median home price has risen an astonishing 38% in the past three years. As a result, pending sales in the region have now declined in four of the last five months and are lower than one year ago for the third month in a row. Closed sales in the region in March were also below last year’s pace,’ Yun said. A breakdown of the figures show that the index in the Northeast increased 3.2% and is now 18.4% above a year ago while in the Midwest the index inched up 0.2% but is now 4% above March 2015. Pending home sales in the South rose 3% but are still 0.6% lower than last March and the index in the West declined 1.8% in March and is now 7.9% below a year ago. Continue reading
Sales up strongly in Scotland but prices down 8.4% year on year
Residential property sales in Scotland increased by 18.2% in the first quarter of 2016 compared to the same period a year ago, the latest official data shows. The figures from the Registers of Scotland also show that prices are down by 8.4% compared to the previous year, bringing the average price to £159,198. A total of 19,802 properties changed hands between January and March, the highest volume of sales for these months since 2007/2008 and the total value of sales across Scotland increased by 8.3% compared to the previous year to just over £3.15 billion. ‘We've seen a sustained increase in the volume of sales throughout the 2015/2016 financial year,’ said Registers of Scotland director of commercial services, Kenny Crawford. ‘This time last year, we saw a spike in house prices, with an increase in the number of high value property sales. By comparison, this year has seen an increase in the volume of lower value properties being sold, which may account for this year's lower average price. Future sales statistics will determine whether this is a one-off decrease, or whether this is a trend that will continue,’ he added. The city of Edinburgh was the largest market, with sales of over £554.6 million for the quarter, up 3.3 while Midlothian recorded the highest increase in value, with sales of over £63 million, an increase of 56.5% compared with the same quarter last year. Aberdeen City showed the largest decrease in market value, down 22.7% to £162.7 million. The highest percentage rise in the volume of sales was in Midlothian, with an annual increase of 48% and Edinburgh recorded the highest volume with growth of 22.4% compared to the same quarter the previous year. The largest percentage fall in volume of sales was in East Renfrewshire, down 14.5%. East Renfrewshire also recorded the highest average property price at £222,303 but this was down 7.9% on last year. The largest percentage rise was seen in North Lanarkshire, where the average property price rose 6.6% to £116,738. The highest percentage fall was recorded in East Lothian, with an average price of £207,276, a fall of 16.5% on last year. All property types showed an increase in sales volumes, with flats showing the biggest increase at 24.2%. They also all showed a decrease in average price this quarter, with detached properties showing the biggest decrease, down 11.6% to £236,249. Semi-detached, terraced, and flatted properties showed price decreases of 8.5%, 10.5% and 7.4% respectively. According to Michelle Grant, investment director at Grant Property, the increase in volume sales reflects what the firm is seeing on the ground. ‘Our buyers are experiencing high levels of competition when trying to secure prime city centre properties on behalf of investors,’ she said. ‘In Glasgow we are bidding against on average eight people for each property and in Edinburgh it can be as high as 20. We have also recently seen properties selling for as much as 15% over… Continue reading
British people dream of a four bedroom home by the sea equipped with high tech
A four bedroom home near a beach or a city centre is the most sought after dream homes in the UK, according to new research. Some 45% dream of a home built to their own specifications designed by an architect or themselves but only 38% think they'll only get to live in their dream house if they win the lottery and 26% don't think they'll ever achieve it. Most people would want an array of high technology and glamourous features that costs £3 million, the research from home buyers estate agency Tepilo found. It also found that 48% would want en-suites in every bedroom and the same number a television or cinema room, while 47% want a huge kitchen with its own kitchen island and the same number a huge garden. Other top desires were walk-in wardrobes and dressing rooms, an indoor swimming pool, a conservatory or orangery, open fires and wood burning stoves, a double front door and his and hers bathrooms. Some 38% want high technology security features, and a further 35% say they'd want their dream home to contain a series of mods cons such as remote controlled heating, lighting and sound systems. Other things near the top of the list are a balcony, a relaxation room, a library, a gym, a separate granny flat or guest lodge, a wine cellar, an aquarium, a bowling alley and a bar. On a beach is the most popular location with 16% wanting a view of the sea but another 16% want to be in a city centre, 11% in the countryside, 10% in the suburbs and 9% in a village. Some 29% want four bedrooms, 27% want three bedrooms and 21% would want a house with five bedrooms. Only 11% would want six or more bedrooms. Meanwhile 14% want a cottage, 12% a huge mansion, 13% a detached bungalow, and 13% a modern home. Amazing views from the garden are important for 52%, 40% want a built in barbeque, 38% a large veranda, 34% a big garage, 30% a water feature, 30% a sweeping driveway, 30% separate out buildings and 20% a children’s play area. ‘What's also interesting is the amount of money Brits would spend on their dream home, despite money being no object. Up to £3 million seems a pretty low price to pay for the ultimate pad, but it demonstrates that we're a price orientated nation that expects value for money when it comes to property,’ said Sarah Beeny, owner of Tepilo. Continue reading
