Tag Archives: housing
New home sales dip down in Australia, latest data shows
Seasonally adjust new home sales in Australia were down marginally by 0.4% in July but the market overall is in strong shape, the latest report from the Housing Industry Association shows. This is because overall new home sales are at historically high levels, according to HIA chief economist Harley Dale. ‘It appears that the cyclical peak for total new home sales occurred in April, but the subsequent downward trend is very mild,’ he said. But he explained that key leading indicators of home building, including HIA new home sales, suggest little prospect for further growth in new home construction in the 2015/2016 financial year. ‘However, following three consecutive years of strong growth which has propped up the domestic economy considerably, both HIA new home sales and ABS building Approvals signal another healthy year for new home construction,’ he added. Indeed, the data shows that detached house sales increased by 0.7% in July this year but the annual peak for detached house sales has passed. Over the three months to July this year detached house sales fell by 2.8% and are 3.4% lower when compared to the three months to July 2014. Multi-unit sales peaked in May this year and fell by 4.2% in July following a decline of 2.9% in June. Over the three months to July this year multi-unit sales increased by 8.3% but it was the strength of the May result that drove the quarterly outcome. A breakdown of the latest data shows that in the month of July 2015 detached house sales increased by 4.2% in New South Wales but fell by 2.3% in Victoria and by 4.9% per cent in Western Australia. Sales were close to flat for the month in Queensland with a marginal fall of 0.6% and South Australia they were down by just 0.2%. Continue reading
US housing market moving further towards stability, says latest Freddie Mac index
The US housing market continues to slowly stabilise with prices just 7% below peak values nationally and price indices in many markets are at all-time highs, according to the latest multi indictor market index. Two additional states, Arkansas and Tennessee, and four additional metro areas, of Omaha, Nebraska; Scranton, Pennsylvania; Chattanooga, Tennessee and Madison, Wisconsin, are now on the outer range of stable housing activity, says the report from Freddie Mac. The national MiMi value stands at 80.3, indicating a housing market that is on its outer stable range, while showing an improvement of 1.33% from May to June and a quarterly improvement of 2.26%. On a year on year basis, the national MiMi value has improved 5.41%. Since its all-time low in October 2010, the national MiMi has rebounded 35% but remains significantly off from its high of 121.7. The data also shows that 28 of the 50 states plus the District of Columbia have MiMi values in a stable range, with the District of Columbia at 101.7, North Dakota at 96.2, Montana at 93.5, Hawaii at 92.9, and California and Utah tied at 89, ranking in the top five. Some 42 of the 100 metro areas have MiMi values in a stable range, with Fresno at 96.8, Austin at 94.9, Honolulu at 93.7, Salt Lake City at 91.7 and Los Angeles at 91.5, ranking in the top five. The most improving states month on month were New Jersey with growth of 2.61%, Florida up 2.6%, the District of Columbia up 2.31%, Connecticut up 2.26% and Nevada and Rhode Island both up 2.18%. The index data also shows that year on year the most improving states were Oregon with growth of 13.59%, Florida up 13.27%, Nevada up 12.38%, Colorado up 10.18% and Rhode Island up 9.32%. The most improving metro areas month on month were Stockton, California, up 3.48%, Cape Coral, Florida, up 3.36%, Sarasota, Florida, up 3.34%, Lakeland, Florida up 3.19% and Tampa, Florida up 2.96%. On a year on year basis, the most improving metro areas were Orlando, Florida with growth of 16.22%, Cape Coral, Florida up 16.13%, Portland, Oregon up 14.57%, Palm Bay, Florida up 14.37% and North Port, Florida up 14.33%. In June, 45 of the 50 states and 95 of the 100 metros were showing an improving three month trend. The same time last year, 33 of the 50 states plus the District of Columbia, and 80 of the top 100 metro areas were showing an improving three month trend. ‘Housing markets are the strongest they've been in years with the National MiMi above 80 for the first time since 2008. Nationally, all MiMi indicators are heading in the right direction,’ said Freddie Mac deputy chief economist Len Kiefer. ‘Robust home buyer demand has put total home sales on pace for the best year since 2007 and look for that trend to continue as the MiMi purchase applications indicator remains on the upswing. The West has been especially strong, with… Continue reading
Property price growth picks up pace across UK cities, latest index shows
Property price growth in key UK cities has picked up pace with annual growth running at 8.5%, up from 7.2%, according to the latest index from real estate analytics firm Hometrack. Growth over the last three months of 4.3% is at the fastest rate for 11 years, the data from the index, which covers 20 main cities, shows. The index report says that growing house price momentum is on the back of a 32% increase in sales volumes since April and a sustained catch-up in prices in cities outside southern England. There remains further upside for house prices in regional cities outside London, it adds, and city level price inflation remains on course to end the year at 10%. All cities with the exception of Aberdeen are registering house growth ahead of growth in average earnings which is currently 2.4%. The highest year on year growth is 10.9% in Cambridge followed by Oxford, London and Bristol. The lowest growth rate is in Aberdeen with a fall of 0.7% and the report suggests that the weakness in the oil price is impacting the local economy and demand for housing. Other cities with below average house price growth are Newcastle, Liverpool and Sheffield where annual growth is running between 2.5% and 4.5%. The report also says that there is room for further catch-up in house prices. Nine of the 20 cities still have average prices that are lower than 2007 levels although this gap is narrowing rapidly. The relative performance of house prices since 2007 remains wide and reflects different economic and demand side drivers of house prices. Average prices in London are 40% higher than in 2007 and 14% higher in Bristol. Cities such as Edinburgh and Glasgow have registered a resurgence in growth more recently post the Scottish referendum although average prices remain 2% and 11% below their peak. Looking ahead, the report says that low mortgage rates, economic growth and rising earnings will continue to stimulate demand and put an upward push on house prices across most cities. As an international city, London is out on its own setting new highs for prices and unaffordability. ‘How long this can be sustained is down to the prospects for the different segments of demand, specifically international buyers, domestic investors and domestic home owners,’ the report explains. ‘Overall we expect city level house price inflation to remain on course to end the year at 10% year on year,’ it concludes. Continue reading
