Tag Archives: london
UK year on year house price growth down in first few weeks of 2015
Annual house price growth in the UK continued to moderate at the start of 2015 with the latest housing index showing it slowed to 6.8% in January compared to 7.2% in December 2014. However, the data from the Nationwide Building Society also shows that month on month prices increased by 0.3%, taking the average price to £188,446. ‘After taking account of seasonal factors, UK house prices are currently 2.4% above their pre-crisis peak. The further moderation in the pace of price growth is unsurprising, given the slowdown in housing market activity in recent months,’ said Robert Gardner, Nationwide's chief economist. He pointed out that the number of mortgages approved for house purchase has been around 20% below the level prevailing at the start of 2014 and surveyors continue to report subdued levels of new buyer enquiries. However, he added that the reasons for the slowdown in activity remain unclear. ‘Unemployment has continued to decline and wage growth has started to outstrip increases in the cost of living for the first time since the financial crisis. Surveys suggest that consumer confidence remains elevated, a view corroborated by healthy gains in retail sales over recent months,’ explained Gardner. ‘Although house price growth continues to outpace income growth by a significant margin, affordability does not appear stretched at a national level. The cost of servicing a typical mortgage remains close to the long run average as a share of take home pay, in part thanks to the ultra-low level of mortgage rates,’ he added. Gardner also explained that the supply side developments are crucial in determining the pace of price growth. ‘Surveyors continue to report a dearth of new homes coming on to the market, which may help to explain why house price growth has remained fairly robust, despite a more noticeable decline in housing demand since the summer,’ he said. ‘If the economic backdrop continues to improve as we and most forecasters expect, activity in the housing market is likely to regain momentum in the months ahead,’ he added. He also said that it is encouraging that the number of new homes built in England was up 8% in the year to the third quarter of 2014. ‘However, this is still 34% below pre-crisis levels and little over half the expected rate of household formation in the years ahead,’ he concluded. Continue reading
Land value growth moderates in England and Wales
The growth in land values moderated across England and Wales in the final quarter of 2014, reflecting the movement in the wider housing market. However residential development land values in prime central London continued their strong growth, ending the year up 24%, the latest report from Knight Frank shows. Greenfield residential development land values remained broadly static in the final quarter of 2014, rising by just 0.1%. Grainne Gilmore, head of UK residential research at Knight Frank pointed out that the annual rate of growth at 2.3% is well below the 7.2% average growth seen in house prices over the year. ‘However it is likely that land price growth will remain subdued over the coming year as rising costs press on margins,’ she explained, and added that activity in the land market has certainly picked up over the last 12 to 18 months. This is reflected in 17% rise in private units under construction across the UK in December 2014 compared to December 2013. The report also shows that there has been an increase in activity in most regions with demand for new housing is also robust across most parts of the country. Indeed, the take-up of the Government’s Help to Buy Equity Loan scheme rising to 38,052 in the 20 months to November 2014, with some 83% of these being first time buyers. The supply of land has also risen, with the activities of land promoters helping boost the pipeline of oven-ready sites. ‘This, in turn, has started to weigh on pricing as while there is still sturdy competition for good sites, it is less fierce,’ explained Gilmore. The report also explains that another factor weighing on green field land prices is the increasing cost of labour and materials. The industry is still gearing up after the recession, and recruitment of new tradesmen is proving problematic in many areas. Gilmore also said that it is no coincidence that the cost of building in the UK has risen up the international rankings. ‘It is now the eighth most expensive country in which to build, from 43 countries surveyed, according to Arcadis, the design consultancy firm, although the relative strength of sterling to the Euro this year has also played a part in this calculation. In prime central London however, the trend is very different,’ she added. Average residential development land values rose by 24% in 2014, up from a modest 2.5% increase in 2012. This takes the cumulative increase in land values since September 2011 to 48%, although this is still lagging the 72% increase in residential property prices seen since the trough in the market after the financial crisis. Rising land prices have helped push the cost of building in central London to the top of the international rankings with the planning system and complicated construction needs also boosting the expense of construction. ‘There has been much competition for land in prime central London, with oven-ready sites particularly sought after. International… Continue reading
Family home sales in Miami reach all time annual record, latest index shows
Miami home sales increased again in December with single family home sales setting an all-time annual record in 2014 and median sales prices continuing to increase at a more moderate rate, the latest data shows. Year-end sales of single family home sales in 2014 set an all-time record, increasing 4.8% and while condominium sales were the second highest in history, they decreased 4.3% compared to the previous year. Combined sales for the year decreased a negligible 0.4%, the data from the Miami Association of Realtors shows. ‘The Miami real estate market again reflected great demand in 2014. More single family homes were sold in Miami-Dade County than ever in history, while condominium sales marked their second strongest year ever despite competition from new construction supply,’ said Christopher Zoller, MAR residential president. Single family home prices, which again increased in December year on year, remain at affordable 2004 levels despite more than three years of consistent year on year increases. Condo prices also increased in December, marking 42 months of growth in the last 43 months. The median sale price for single family homes increased 3.6% to $255,000 from $246,180 in December 2013. The average sale price for single family homes decreased 1.7% from $414,560 in December 2013 to $393,340 last month. Compared to December 2013, the median sale price for condominiums increased 9.6% to $195,000 from $175,000 a year prior. The average sale price for condominiums increased 19.9% to $409,707 from $341,687 in December 2013. The report also shows that Miami properties continue to sell rapidly and at nearly asking price, reflecting strong demand. The median number of days on the market for single family homes sold in December was 45 days, an increase of 9.8% from December 2013. The average percent of original list price received was 94.7%, down 1.7% from a year earlier. The median number of days on the market for condominiums sold in December was 57 days, an increase of 9.6% compared to the same period in 2013. The average sale price was 93.8% of the asking price, a decrease of 3.3%. The median days on market for properties sold in 2014 were 45 days for single family homes, an increase of 9.8% and 57 days for condominiums, an increase of 23.9%. The average sales price was 95% of the asking price, a decrease of 0.6% for single family homes and 94.7%, a decrease of 1.7%, for condos. Cash sales in Miami continue to decline as more financing becomes available. Still, access to mortgage loans for condominium buyers remains limited, impeding further market strengthening. In Miami-Dade County, 55.9% of total closed sales in December were all-cash transactions, compared to 57.2% in December 2013. Cash sales in Miami are still double the national figure of 26%. All-cash sales accounted for 41.8% of single family home and 68.5% of condominium closings, compared to a year earlier when cash sales were 41% of single family home sales and 70.3% of condominium… Continue reading
