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Miami continues to see steady growth in its residential property market
Median residential sales in Miami, one of the US’s most dynamic real estate markets, continued rising last month and have now been increasing for more than three years. Indeed the latest figures from the Miami Association of Realtors shows that single family home sales registered double digit growth in February and set an all-time Miami annual record in 2014, up 14.2% compared to February 2014. Existing condominium sales posted the second best year in Miami history in 2014 despite an increase in new condo construction and rose 1.4% from February of last year. Combined, Miami-Dade County residential real estate sales increased 6.8% compared to the same time period in 2014. ‘Miami residential home sales continue to grow at a moderate rate. Seller confidence and buyer demand in the Miami real estate market is leading to more active listings and higher sale prices,’ said Christopher Zoller, the association’s residential president. The data also shows that family home prices increased again in February but remain at affordable 2004 levels despite more than three years of consistent year on year increases. Condo prices also increased in February 2015, marking 44 months of growth in the last 45 months. The median sale price for single family homes increased 7.9% to $245,000 in February 2015 from $227,000 in February 2014. The average sale price for single family homes increased 4% to $431,746 last month from $415,312 during the same time period last year. Compared to February 2014, the median sale price for condominiums increased 6.8% to $189,000 from $177,000 a year prior. The average sale for condominiums increased 8.4% to $365,856 from $337,382 in February 2014. Miami single family homes and condominiums continue to sell close to asking price, reflecting a strong consumer demand. The median number of days on the market for single family homes sold in February 2015 was just 46 days, a decrease of 2.1% compared to the same period in 2014. The average percent of original list price received was 94.6%, down a negligible 0.6% from a year earlier. The median number of days on the market for condominiums sold in February 2015 was 65 days, an increase of 14% compared to the same period in 2014. The average percent of original list price received was 93.3%, a 1.8% decrease. Cash sales in Miami increased relative to last month, but are down compared to the same time period last year. Access to mortgage loans for condominium buyers remains limited. The lack of Federal Housing Administration loans for a large number of existing Miami condominium buildings is preventing further market strengthening. In Miami-Dade County, 58.8% of total closed sales in February 2015 were all cash transactions, up from 57.2% from the previous month. Cash deals in Miami are down relative to February 2014 when 62.5% of transactions were all cash. Miami condominiums comprise a large… Continue reading
New tenants in UK facing higher rents as demand increases
There is an increase in demand for property in the UK private rental sector with new tenants seeing a rise in monthly rents from a third of lettings agents. Indeed some 31% of letting agents saw an increase in the cost of monthly rent for tenants from January to February, according to the Association of Residential Letting Agents (ARLA) monthly Private Rented Sector Report. The South East of England saw the highest number of landlords increasing rent per calendar month with 41% of agents in the region reporting an increase whereas in contrast in Wales only 13% of agent’s reported uplift in rent prices. An increase in rents may be down to the fierce competition for rental property. ARLA licensed agents reported an average of 40 prospective tenants per branch in February, up from 38 in January. The report points out that whilst only 13% of Welsh tenants saw an increase in rents, they are facing the most competition for housing, with 46 tenants registered per member branch. Tenants in the East of England are also facing fierce competition with an average of 45 house hunters registered at each branch. Overall the report says that supply in the rental market remains steady, with an average of 184 properties managed per member branch, which is the same as last month. The East Midlands boasts the highest level of supply, with an average of 269 properties per branch, whilst supply in London has dropped to an average of 122 per branch, down from 140 in January, increasing already intense competition in the capital. According to David Cox, ARLA managing director, it shows that demand for rented accommodation is still on the increase, and monthly rents are following suit. ‘When demand is high then the premium for a home increases. House prices are still sky high and are unlikely to reduce anytime soon, which means that getting onto the property ladder is a challenging and unlikely task for many, so renting a property is the only option available,’ he explained. Looking ahead to the general election in A RLA Letting agents are strongly against Labour’s proposal to introduce three year tenancy agreements with rent controls and strict rules to make it more difficult to evict tenants The survey found that 70% of agents believe this would result in landlords pulling out of the market and creating a decrease in the supply of rental property, which would have detrimental effects on the industry. Just under half of agents, 46%, argue that three year tenancy agreements would cause them to lose flexibility over the duration of their tenancy agreements and 69% of ARLA agents think point blank that the proposal would not benefit tenants. When it comes to building new homes to help kick start the property market, some 37% of ARLA agents believe that the Conservatives’ pledge to… Continue reading
Research reveals concerns about new mortgage rules in UK
More than half of people who are either considering, or are in the course of applying for a mortgage in the UK believe that the obligation placed upon mortgage lenders to assess their ability to repay will slow down the application process. Overall 59% are in this position and 32% of those who have yet to apply also said they would find it fairly difficult to obtain evidence of all the expenditure information they believe a lender needs to assess a mortgage application. The research from Equifax, a credit information provider, also found that 69% who responded to the survey expressed concern that more detailed affordability checks would affect the amount they could borrow and 40% are worried about the time it will take to complete their mortgage application. The new responsibilities placed upon lenders, which came into effect in April 2014 as a result of the Mortgage Market Review, place even greater onus on the lender to assess an applicant's ability to repay. The applicant's credit history is likely to play a crucial role in that assessment, alongside other information gathered as part of the application process. ‘It is important to remember that lenders will take into account the information provided on the application form and will look at an applicant's income and outgoings to ensure they can afford the mortgage they are applying for, now and in the future. However, our research suggests that 22% are still unconvinced that the new affordability rules will help prevent home owners overstretching themselves in the long term,’ said Laura Barrett of Equifax Consumer Affairs. ‘We would recommend compiling any financial documents and expenditure information needed to support a mortgage application, as soon as the application process starts. Advance preparation will hopefully avoid any unnecessary delays,’ she pointed out. ‘A lender will typically look at an applicant's credit history when determining whether they meet eligibility criteria and may also use credit information during affordability assessments. Therefore, it is suggested that individuals check their credit report before making any applications to ensure that it is in the best possible shape for them,’ she added. Continue reading
