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Miami saw record demand for property in 2014
The Miami real estate market continued to perform robustly in the fourth quarter of 2014 due to renewed consumer confidence and increasing demand from both domestic and international buyers, according to the latest monthly index report. The median sales price for single family homes increased to $246,140 in the fourth quarter, a 4.7% jump compared to the same period last year, the data from the Miami Association of Realtors shows. The median sale price for condominiums increased 8.6% to $190,000 in the fourth quarter compared to a year earlier. Miami-Dade County has now seen 12 consecutive quarters of growth for both single family homes and condominiums. ‘We expect Miami home prices to continue to increase in 2015 but at a more moderate rate. Limited supply and strong demand for single family homes is still reflective of a seller’s market,’ said Christopher Zoller, the association’s residential president. ‘There is also strong demand for both new construction and existing condominiums, so we will continue to see price growth for residential properties in Miami-Dade,’ he added. Compared to the fourth quarter of 2013, the average sales prices for condominiums in Miami-Dade County increased 18.5% to $375,269. The average sales price for single family homes decreased 2% to $394,095. Sales of single family homes, which set an all-time record for all of 2014, increased 7.7% to 3,426, while condominiums decreased 3.3% to 3,981 compared with the same period in 2013. ‘Much of the increase in single-family home sales activity is due to consumer confidence. Many buyers who were staying on the side lines are now buying. Huge gains in job growth and more solid economic indicators are resulting in more consumers returning to the housing market,’ explained Carlos Gutierrez, the 2015 president-elect of the association. Home and condominium listings also increased in the fourth quarter of 2014, up 3% in the fourth quarter of 2014 compared to the same period last year. New condominium listings increased by 4.2%. At the current sales pace, the number of active listings represents 5.6 months of inventory for single family homes and 8.4 for condominiums. Compared to the fourth quarter of 2013, the month’s supply of inventory for condominiums increased 19.7%. The inventory for single family homes decreased 0.2%. A balanced market between buyers and sellers offers between six and nine months of supply inventory. The median days on the market of single family home listings during the fourth quarter was 45 days compared to 40 days during the same period last year, an increase of 12.5%. Similarly, the median days on the market for condominium listings were 58 days compared to 47 last year, an increase of 23.4%. In the fourth quarter of 2014, some 55% of closed sales were all cash compared to 60% a year ago. All cash sales were 41.4% of single family home closings and 66.9% of all condominium sales. Since nearly 90% of foreign buyers pay cash, this reflects Miami’s top position as a prime… Continue reading
Property markets varying across the UK, latest RICS survey shows
Supply and demand varied across the UK residential property market in January and 49% more London surveyors saw prices fall in January 2015 according to the latest monthly index. Scotland and Northern Ireland’s housing market outperformed the rest of the UK in January, with more buyer enquiries, stronger price growth and higher confidence in the outlook, the survey from the Royal Institution of Chartered Surveyors (RICS) shows. While nationally, the number of potential new buyer enquiries fell for the seventh consecutive month, Scotland saw the greatest buyer interest with several respondents suggesting the new Land and Buildings Transaction Tax (LBTT) will prompt more first time buyers to get on the property ladder. Meanwhile, Northern Ireland’s housing market witnessed the strongest price momentum for the fifth consecutive month, with 47% more respondents reporting increases in prices. However, RICS says that the national results, which are based on England and Wales only, continue to signal a cooling market and price growth has all but levelled off with just 2% more surveyors expecting prices to increase over the next three months, its slowest pace since May 2013. The survey shows that within England, London market conditions continue to deteriorate with prices, buyer enquiries and sales falling. Some 49% more respondents saw prices in the capital decline and the short-term confidence outlook is negative, despite the longer terms sales outlook being more upbeat. In the lettings market 19% more respondents reported a further rise in tenant demand during the three months to January and while supply appears to be dipping once again, there is anecdotal evidence to suggest that some new build rental properties are coming to market and surveyors’ rental growth expectations now stand at 4.6% per annum over the course of the next five years. Despite a month in which mortgage approvals fall to their one of their lowest levels, the number of agreed sales showed a slight increase in January, up from 19.1 to 19.7, and the 12 month member forecast is more optimistic around activity levels with 48% of surveyors still expecting sales to rise. ‘The changes to stamp duty and pending introduction of LBTT in Scotland are, to varying degrees, providing an incentive to first time buyers, but there remain a number of challenges to market, such as ongoing affordability constraints, lack of stock and an air of caution in the run-up to the general election,’ said Simon Rubinsohn, RICS chief economist. ‘Overall, while the RICS lead indicators suggest the level of house building looks set to increase over the course of 2015, the volume of home starts will still fall considerably short of the number of new households being formed, let alone making a dent in the historic shortfall of housing across all tenures,’ he added. Continue reading
Rents increase in UK as demand outstrips supply
The average UK rent is now £836 per calendar month, an increase of 2% year on year as demand, especially for quality homes outstrips supply. The data from the latest analysis report from lettings agency Countrywide also shows that one and two bedroom properties saw the greatest increase in rent up 8.5% and 3.6% to £751 and £810 respectively. While three bedroom properties recorded a 1.6% increase to £930, however, four bedroom plus properties experienced a 3% decrease to £1,345 per calendar month. On a regional basis Greater London had he largest annual increase in rent, up 10.6% to £1,265, followed by Wales up 6.1% to £666 and the South West up 4.1% to £765. The only region to see a decrease in rent year on year was the South East, down 4.1% to £1,035 and the firm said that was due to a fall in demand for rental accommodation in the region as more tenants move out of the private rented sector and into the owner occupier sector. A breakdown of the figures shows that the average rent for newly let properties was £883, an increase of 2.8%. In this sector one and two bedroom properties saw the largest growth in rents year on year, increasing 3.3% and 1.9% respectively Renewed tenancies averaged £835 per calendar month with one bedroom properties in this sector recording the greatest annual increase in rent with a rise of 3.3%, followed by two bedroom properties up 1.9% and three bedroom properties up 1.7% to £875. Four bedroom plus homes saw rents stay broadly the same with just a 0.2% decrease. The majority of UK regions saw an increase in rent for renewed tenancies in January 2015. Scotland sees the greatest increase up 5% year on year to £634, followed by Greater London, up 4.7% to £1,110 and the Midlands with a 3% increase to £622. Some regions see a decrease in rents, most notably the North of England with a decline of 1.2% to £599, followed by Wales down 0.7% to £592 and the South East down 0.5% to £1,010. Year on year average rents have increased for all property sizes with the smaller properties leading the way. One bedroom properties see the greatest increase in rent up 2.7% to £688, followed by three bedroom properties up 2.2% to £875, two bedroom properties up 1.9% to £768 and four bedroom plus properties up 1.3% to £1,328. The data also shows that arrears have decreased year on year in all regions apart from the North of England where they have stayed the same, and central London where there has been a marginal increase of 0.6%. ‘Renting is a flexible and relatively hassle free way of living which suits many people's lifestyles. It allows them to settle in a location where perhaps they couldn’t afford to buy but they enjoy living in. With a growing population of lifetime renters, increasing the amount of good quality,… Continue reading
