Tag Archives: middle-east
Severe shortage of properties for sale pushing up asking price, says latest index
The supply of property coming onto the market in England and Wales has fallen by 8% year on year and as a result prices are set to keep rising. The latest index shows that in the East England asking prices have already risen 2.1% this year as supply is overwhelmed by demand while overall the average asking price for England and Wales is up 0.7% month on month. The date from Home.co.uk also shows that asking prices have increased in all regions except the North West and North East during the last month. And year on year asking prices are up 8.1% overall. In the East of England the supply divide is the most acute and in this region asking prices are up 12.2% year on year, meaning it has overtaken both Greater London and the South East which saw annual rises of 12% and 10.3%. The index report says that across England and Wales, prices remain on a strong rising trend and this looks set to continue as interest rates are currently on hold until at least 2017. It also points out that the total stock of property for sale remains very low, and scarcity will continue to be one of the key drivers of the 2016 property market in the UK. The second key driver is ultra-low interest rates. The number of properties entering the market is down 8% compared to a year ago. The hardest hit is the West Midlands where 17% less new stock arrived on estate agents' books this January compared to January 2015. The East of England is also in the midst of a property drought and 14% less stock was registered on agent portfolios last month. Looking to the North and Wales, the picture is very different. Only small drops in numbers of properties entering the marketplace have been observed in the North East, North West, Wales and Yorkshire. Supply in these regions remains relatively buoyant and, consequently, prices show little if any upward progress. ‘With interest rates on hold at super low levels for the foreseeable future, we are likely to witness price growth continuing to ripple out from London across the rest of the country. Lack of supply will be the key driver and, as buy to let investment continues to soak up many of the available properties, so supply will continue to dwindle,’ said Doug Shephard, Home.co.uk director. ‘The London market is now maturing and is slower and with more moderate price rises. Investment capital is now making its presence felt further afield in the East and South East where prices are leaping ahead and supply of stock for sale is crashing,’ he explained. ‘We may expect the same or a similar market dynamic to become manifest in the West Midlands, the South West and the East Midlands towards the end of the year, together with significant price growth,’ he added. ‘What is clear is that this property boom is not going away while borrowing… Continue reading
Home prices set to rise 5.4% in the United States in 2016
Home prices across the United States, including distressed sales, increased year on year by 6.3% in December 2015 and increased month on month by 0.8%, the latest index shows. And forecast data from the CoreLogic House Price Index also indicates that home prices are set to rise by 5.4% this year. ‘Nationally, home prices have been rising at a 5% to 6% annual rate for more than a year,’ said Frank Nothaft, chief economist for CoreLogic. However, he added that local market growth can vary substantially from that. For example, some metropolitan areas have had double digit appreciation, such as Denver and Naples, Florida, while others have had price declines, like New Orleans and Rochester, New York. ‘Higher property valuations appear to be driving up single-family construction as we head into the spring. Additional housing stock, especially in urban centres on the coasts such as San Francisco, could help to temper home price growth in the longer term,’ said Anand Nallathambi, president and chief executive officer of CoreLogic. ‘In the short and medium term, local markets with strong employment growth are likely to experience a continued rise in home sales and price growth well above the US average,’ he added. Meanwhile, research from real estate firm Zillow shows that buyers in Boston, New York, and Washington, D.C. have to stay in a home for at least three years to break even on a home purchase, and buyers in the Bay Area would have to stay nearly that long to make buying financially advantageous. In general, Americans can break even on a home purchase in less than two years in 70% of US metros and the firm says that this is thanks to low interest rates, healthy home value forecasts, and the relatively fast pace of rents in recent years. The Breakeven Horizon index shows that on average you don't need to plan on living in a home for even two years to make purchasing the home more financially advantageous than renting it over the same time period. Among large housing markets, the Breakeven Horizon is longest in Washington, D.C. at 4.5 years and shortest in Dallas at 1.3 years. Around the country over the last year, the Breakeven Horizon quickened in most of the Midwest and Southeast as well as in the Northeast corridor from New York to Boston. The Horizon stretched longer in Florida, Northern California, and in the Northeast from Virginia Beach to Philadelphia, but it remained clear that financially, it's still a better deal to buy a home than rent it, assuming you're planning to stay in the home for at least a couple years. ‘Even with record high rents in places like San Jose, Boston and Washington, D.C., putting off a home purchase might be the best financial decision for a young person who has saved enough for a down payment, depending on how long they intend to stay in their jobs and homes,’ said Zillow chief economist Svenja… Continue reading
Average prices in England and Wales now over £290,000, latest index shows
Home values in England and Wales rose by 0.2% in January taking the average house price above £290,000, the latest price index shows. ss England and Wales. Last June, average prices crossed the £280,000 marker, but we have to go back to August 2014 for the crossing of the £270,000 threshold’ said Adrian Gill, director of Reeds Rains and Your Move estate agents. ‘We’re now passing these milestones in quicker and quicker succession, as prices pick up pace. This hastening is good news for home owners, but means it’s getting harder for those still hoping for home ownership. In the last 12 months there’s been a 5.5% upswing in average property prices compared to just a 2.1% rise in average earnings,’ he pointed out. However, he also pointed out that aspiring buyers now have much more support to help get a foothold on the ladder, with the launch of the Help to Buy ISA in December and the new Starter Homes scheme this year. ‘But in the long term there has to be a huge breakthrough in house building if we’re going meet the growing demand for homes and keep house price growth sensible,’ added Gill. The analysis of the data says that while the South East remains the region with the fastest year on year price rise at 7.7%, London has now moved to second place. The typical property in London has increased in value by £34,485 in the last year, almost equal to the £35,333 median gross annual earnings in the capital. Gill explained that this 6.2% rise in the capital’s home values has been driven by activity in the more affordable outer boroughs. The cheapest 11 boroughs have seen the biggest boost in property prices, up 14% or £47,052 year on year, with a typical home in Newham now costing £63,429 or 23% more than in December 2014. ‘As London workers attempt to find affordable places to buy, prices are rising in the nearby commuter towns as well. The fastest growth year on year across the country has been experienced in Luton where home values are up 17.5%, with trains here only taking 23 minutes to get into St Pancras Station,’ said Gill. He also said that while home sales saw the usual seasonal slump in January, falling 26% from the previous month’s level, this is better than expected, with sales typically dropping by 28% between these two months. ‘Regionally, there has been a significant upswing in sales in the North West, rising 8.8% in the last quarter of 2015, compared to the same period in 2014. We are now seeing faster growth in sales in lower-priced areas, as buyers seek more property for their money,’ Gill explained. He also said that when looking at the type of property selling successfully, there has been a turnaround in the trend seen in recent years. Sales of detached homes are now rising fastest, up 5%… Continue reading
