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Sales and prices in Canada continue upward but with considerable local variations
Home sales in Canada increased by almost 2% in August compared with the previous month and prices were up 5.3% year on year, according to the latest index from the Canadian Real Estate Association (CREA). Actual, not seasonally adjusted, activity stood 2.1% above August 2013 levels and the number of newly listed homes fell 1.2% from July to August. The 1.8% month on month sales rise marked the seventh consecutive monthly increase, and the highest level for sales since January 2010. Although activity rose in fewer than half of all local housing markets in August, the national tally was fuelled by monthly sales increases in Greater Vancouver, Calgary and Greater Toronto. ‘Sales picked up in some of Canada’s most active and expensive real estate markets which fuelled another national increase. Even so, the national increase in sales does not reflect local trends in many markets across Canada,’ said CREA president Beth Crosbie. CREA chief economist pointed out that sales activity in recent months has remained stronger than was anticipated earlier this year. ‘Listings and sales this spring were deferred due to unseasonably harsh weather, which subsequently supported activity once the delayed spring home buying season got into gear. This trend was reinforced by a decline in mortgage interest rates,’ he said. The boost from deferred sales is still expected to prove transitory. While national activity has yet to cool, sales were down from the previous month in the majority of Canada’s local markets, which may be early evidence that the transitory boost is fading. That said, low interest rates will continue to support housing affordability and sales activity,’ he added. The index also shows that year to date sales activity is up 4.3% compared to the first eight months of 2013 and remains in line with the 10 year average for the period. The actual, not seasonally adjusted, national average price for homes sold in August 2014 was $398,618, up 5.3% from the same month last year. But CREA points out that the national average price continues to be skewed upward by sales activity in Greater Vancouver and Greater Toronto, which are among Canada’s largest and most expensive housing markets. Excluding these two markets from the calculation, the average price is a relatively more modest $324,738 and the year on year increase shrinks to 3.9%. Year on year price growth in August picked up slightly for townhouse and terraced homes and apartments but slowed for one storey single family homes and was unchanged for two storey single family homes. Two storey single family homes continue to post the biggest year on year price gains with growth of 6.32%, followed closely by town house and terraces up 5.59% and one storey single family homes up 5.23%. Price growth for apartments remains comparatively more modest at 3.38%. Year on year price growth varied among local housing markets tracked by the index. As in recent months, the biggest gains were in Calgary with price rises of 9.83% followed by Greater Toronto at 7.82%… Continue reading
Difference between asking and selling prices in Scotland narrows
Average asking prices across Scotland increased by £2,000 and the average selling price increased by over £8,500 to £162,122 in the second quarter of the year, narrowing the gap between the two to less than 1%. Flats continue to sell above their asking price typically selling for around £18,000 more, up from £11,000 last quarter, according to the latest index from s1homes. This means that the average selling price for flats increased by over £8,500 to £126,844 while the average asking price rose by around £1,500 to £108,472. Both the average asking and average selling price of terraced houses increased this quarter, up by £4,000 and £9,000 respectively. Terraced houses on average sell for £11,000 more than their asking price up from £7,000 in the previous quarter. This quarter the average selling price for a terraced property has increased and is once again higher than the average asking price. It increased by over £8,000 to £150,458. There is less than £1,000 of a difference between the average asking price and average selling price this quarter. Detached houses are the only property type where a Reality Gap exists and this has remained at 13% for a second consecutive quarter as both the average asking and selling prices increased. Typically detached houses sell for £37,000 less than their asking price. A breakdown of the figures shows that in Argyll and Bute the Reality Gap has narrowed significantly from £47,000 to £28,000 driven by the increase in the average selling price. The average selling price increased by £21,000 to £156,495. In Ayrshire the average selling price has increased by £10,000, narrowing the Reality Gap to £21,000, down from £31,000 last quarter. For a second consecutive quarter the average asking price remains relatively static at £146,336. The Reality Gap has narrowed in East Lothian where on average properties are selling for £27,000 below their asking price compared with almost £36,000 in the previous quarter. The average selling price has increased by £15,000 to £209,349. In East Renfrewshire, the Reality Gap has narrowed to 6.5% with properties on average selling for £16,000 less than their asking price. Both the average asking price and average selling price have increased, rising by £9,000 and £16,500 respectively. In Edinburgh, properties are once again typically selling for more than their asking price. This quarter both the average asking price and average selling price increased, the average asking price by £6,000 and the average selling price by £12,500. In Falkirk, the Reality Gap has narrowed from £24,000 to £15,000 despite the average asking price increasing by £4,500 as the average selling price increased by over £13,500. The Reality Gap in Fife has widened slightly this quarter with properties typically selling for around £11,000 less than their asking price. The average asking price and average selling price this quarter both increased by around £2,000. In Glasgow/Dunbartonshire both the average asking price and average selling price have increased by £3,500 and £3,000 respectively. The Reality Gap remained at 5% with properties typically selling for almost… Continue reading
UK house prices up 11.7% year on year and national index reaches new record
UK house prices increased by 11.7% in the year to July 2014, up from 10.2% in the year to June 2014, according to the latest figures from the Office of National Statistics. House price annual inflation was 12% in England, 7.4% in Wales, 7.6% in Scotland and 4.5% in Northern Ireland. The index report says that overall house prices are increasing strongly across the UK, with prices in London again showing the highest growth. Annual house price increases in England were driven by an annual increase in London of 19.1% and to a lesser extent increases in the South East at 12.2% and the East at 10.6%. Excluding London and the South East, UK house prices increased by 7.9% in the 12 months to July 2014 and on a seasonally adjusted basis, average house prices increased by 1.6% between June and July 2014. In July 2014, prices paid by first time buyers were 13.5% higher on average than in July 2013. For owner occupiers prices increased by 10.9% for the same period. The mix adjusted house price index reached a record level of 206.6, some 2.7% higher than June 2014 when it reached 201.2, and 11.4% higher than the pre financial crisis peak of 185.5 in January 2008. David Newnes, director of Reeds Rains and Your Move estate agents, pointed out that while what’s happening in London may be eye-catching, it is like looking through a kaleidoscope and skews any view of the current total housing landscape. ‘Peeling back the regional layers gives a much more informed view of the core reality of the current market. According to our own research, house price growth slowed across all regions except for London, the South East and East Anglia in July. While these three regions continue to set new house price highs, the rest of the country is nowhere near these levels of growth,’ he explained. ‘Most recently we’re seeing asking prices in the capital start to be reined in, which will apply the brakes on annual house price inflation as the market steadies. With evidence of London starting to cool off after strong growth earlier in the year, it is critical that the underlying momentum that has stimulated much needed increased volume in the rest of the market is allowed freedom to keep moving, whilst any price rises are kept steady and under control,’ said Newnes. ‘Further afield, it is critical that support mechanisms like Help to Buy aren’t dismantled. Compared to the nadir of 2008/2012, activity in the housing market has improved, but is not completely out of the woods yet, and still needs to recapture some of the vitality of its pre-recession health,’ he concluded. Peter Rollings, chief executive officer of Marsh & Parsons, believes that the market is returning to business as usual. 'UK house price growth is persevering with its upward climb, but the stride is steadying with prices rising an orderly 1.6% in the month to July 2014. However, London remains the snag in the… Continue reading
