Tag Archives: housing
Home sales down almost 5% in the US in January
Existing home sales in the United States declined in January to their lowest rate in nine months, but the pace was higher than a year ago for the fourth straight month, according to the latest index. The data from the National Association of Realtors all major regions experienced declines in January, with the Northeast and West seeing the largest. Total completed transactions fell 4.9% to a seasonally adjusted annual rate of 4.82 million in January, the lowest since last April from an upwardly-revised 5.07 million in December. Despite January’s decline, sales are higher by 3.2% than a year ago. Lawrence Yun, NAR chief economist, said that the housing market got off to a somewhat disappointing start to begin the year with January closings down throughout the country. ‘January housing data can be volatile because of seasonal influences, but low housing supply and the ongoing rise in home prices above the pace of inflation appeared to slow sales despite interest rates remaining near historic lows,’ he explained. ‘Real estate agents are reporting that low rates are attracting potential buyers, but the lack of new and affordable listings is leading some to delay decisions,’ he added. Total housing inventory at the end of January increased 0.5% to 1.87 million existing homes available for sale, but is 0.5% lower than a year ago when it was 1.88 million. Unsold inventory is at a 4.7 month supply at the current sales pace, up from 4.4 months in December. The median existing home price for all housing types in January was $199,600, which is 6.2% above January 2014 and marks the 35thconsecutive month of year on year price gains. ‘Although sales cooled in January, home prices continued solid year on year growth. The labour market and economy are markedly improved compared to a year ago, which supports stronger buyer demand. The big test for housing will be the impact on affordability once rates rise,’ Yun pointed out. The data also shows that all cash sales were 27% of transactions in January, up from 26% in December 2014 but down from 33% in January of last year. Individual investors, who account for many cash sales, purchased 17% of homes in January, unchanged from last month and below January 2014 when it was 20%. Some 67% of investors paid cash in January. Distressed sales, that is foreclosures and short sales, were 11% of sales in January, unchanged from last month but down from 15% a year ago. Some 8% of January sales were foreclosures and 3% were short sales. Foreclosures sold for an average discount of 15% below market value in January, unchanged from December, while short sales were discounted 12%, also unchanged from last month. Properties typically stayed on the market slightly longer in January at 69 days than December at 66 days and a year ago at 67 days. Short sales were on the market the longest at a median of 128 days in January, while foreclosures… Continue reading
Stamp duty changes in UK push first time buyer deposits to 18 month high
First time buyer deposits in the UK have increased by 15% in a year to average almost £30,000, driven by lower stamp duty bills for new buyers, according to the latest analysis. The average first time buyer deposit was £29,127 in January, up 7% compared to December 2014 and 15% higher than £25,314 in January 2014, the first time buyer tracker report from estate agents Your Move and Reeds Rains shows. The data also shows that first time buyers are saving the largest amount for their deposit since July 2013, some 18 months ago, as savings from December’s stamp duty changes take effect. This has also helped drive rising purchase prices for first time buyer homes, which have climbed to a new record. New buyers paid an average of £160,304 in January, 12% more than £143,343 a year ago. Revisions to the stamp duty slab system have reduced the upfront costs for many first time buyers, allowing them to divert that cash into a deposit fund. First time buyers paying the average purchase price would have been liable for stamp duty fees of around £1,600 before the graduated system was implemented, but this would now have been reduced to £700, saving them roughly £900. The report also says that simultaneously, as wages start to see a significant pick-up in real terms, growing purchasing power is reflected in the average first time buyer Loan to Value ratios and these have fallen 1.1% over the last three months, suggesting deflation and growing wages are allowing first time buyers to put together slightly larger deposits. Despite this, the average loan to income ratio for first time buyers has risen on an annual basis. On average, deposits now represent 75.4% of a first time buyer’s income, compared to 70.6% a year ago. ‘A fusion of economic factors is alleviating some of the financial burden of forming a deposit. Wages are starting to recover and inflation has fallen to a record low, meaning buyers have slightly more cash to play with day to day. And stamp duty fees were slashed for many new buyers when the government reformed the old slab system, freeing up further funds. It’s still difficult to save, with savings rates tied closely to the low base rate. But it’s easier to put cash aside than it was a year ago,’ said Adrian Gill, director Your Move and Reeds Rains. ‘However, property prices have pushed a new record for first-time buyers, meaning these extra funds are being diverted directly into larger deposits. Putting together a deposit to buy a property remains one of the most arduous tasks for prospective home-buyers, and schemes like Help to Buy are essential to allow the swathes of buyers reliant on higher LTV mortgages to get onto the housing ladder,’ he explained. The data also shows that there were 21,200 first time buyer… Continue reading
Confidence in property market reaches three year high in UK
Confidence in the UK property market has reached a three year high, according to new research from Clydesdale and Yorkshire Banks. Almost a quarter of people plan to change their current property either by extending or carrying out home improvements, the research found. A further 14% said they want to sell their house in the coming year. Finances are also high on the agenda with 11% planning to either pay off their mortgage, make overpayments or re-mortgage in the coming 12 months. The results, which show a consistently improving picture in the three years since homeowners were first asked about confidence levels, were revealed in the latest Annual Housebuyers Survey by the Banks. The survey supports the latest findings from the Council of Mortgage Lenders which reported that 2014 lending levels were the highest since 2007. Among those surveyed by the Banks in 2013, 62% of people said they planned to simply stay in their current home. The figure dropped to 58% a year later and dipped by a further 17% to 41% in 2015. Of those planning a move in the next 12 months, Londoners are most likely to move with 22% putting up a For Sale sign. Within that group, some 8% of Londoners plan to move up the property ladder, a further 8% have aspirations to relocate and 6% hope to downsize. In contrast only 10% in Scotland and 8% of those in Yorkshire plan to move in 2015. The optimism can also be seen with 44% expecting the value of their home to increase, while 54% think it will remain the same. Men are more optimistic about an increase with half of those surveyed anticipating an increase in value compared to 38% of women. Of those who believe the value of their home will increase the main reason is the increase in property prices in their local area, as well as an upturn in demand. Confidence is at its highest in London where 64% believe their property will increase in value in 2015 in sharp contrast to Wales where just less than a quarter, 24%, share a similar view. ‘We have seen optimism returning to the property market over the last few years and this seems to be growing with more people planning house changes whether it is to move, make home improvements, pay off their mortgage or even help a family member to get onto the property ladder,’ said Steve Fletcher, head of Clydesdale and Yorkshire Banks Retail Network. ‘Whatever the circumstances Clydesdale and Yorkshire Banks have a range of products to suit different needs and budgets and to help make the UK's property aspirations for 2015 a reality,’ he added. Continue reading
