Tag Archives: news
Low supply results in existing home sales in the United States tumbling by over 7%
Existing home sales in the United States tumbled in February amidst unshakably low supply levels and steadfast price growth in several sections of the country, according to the latest index report. But prices are still increasing with the data showing that the median existing home price for all housing types in February was $210,800, up 4.4% from February 2015. It was the 48th month in a row for price growth. The data from the National Association of Realtors also shows that all four major regions saw sales fall, led by the Northeast and Midwest, with overall transactions down by 7.1%, the index report data shows, but sales are still 2.2% higher than a year ago. ‘Sales took a considerable step back in most of the country last month, and especially in the Northeast and Midwest,’ said Lawrence Yun, NAR chief economist. Yun explained that a lull in contract signings in January from the large East Coast blizzard, along with the slump in the stock market, may have played a role in February's lack of closings. ‘However, the main issue continues to be a supply and affordability problem. Finding the right property at an affordable price is burdening many potential buyers,’ he added. According to Yun, job growth continues to hum along at a robust pace, but there appears to be some uneasiness among households that the economy is losing some steam. This was evident in NAR's latest quarterly which revealed that fewer respondents believe the economy is improving, and a smaller share of renters said that now is a good time to buy a home. ‘The overall demand for buying is still solid entering the busy spring season, but home prices and rents outpacing wages and anxiety about the health of the economy are holding back a segment of would-be buyers,’ Yun pointed out. The data also shows that total housing inventory at the end of February increased 3.3% to 1.88 million existing homes available for sale, but is still 1.1% lower than a year ago. Unsold inventory is at a 4.4 month supply at the current sales pace, up from four months in January. All-cash sales were 25% of transactions in February, down from 26% both in January and a year ago. Individual investors, who account for many cash sales, purchased 18% of homes in February compared to 17% in January, matching the highest share since April 2014 while 64% of investors paid cash in February. ‘Investor sales have trended surprisingly higher in recent months after falling to as low as 12 percent of sales in August 2015. Now that there are fewer distressed homes available, it appears there's been a shift towards investors purchasing lower priced homes and turning them into rentals. Already facing affordability issues, this competition at the entry level market only adds to the roadblocks slowing first time buyers,’ Yun explained. The share of first time buyers fell to 30% in February, matching the lowest share… Continue reading
Liverpool district named as top up and coming area for affordable homes in UK
New research shows where in the UK it is possible to find a home below the national average price of £200,000 but in areas where there has also been storing price growth in recent months. Liverpool's central L1 postcode is the top affordable area on the up, having seen a property price increase of 41.2% in the last year. An average property increased in value from £85,000 between December 2011 and November 2014, to an average of £120,000 for the year to November 2015. The analysis of Land Registry data by consumer organisation Which? Mortgage Advisors, also shows that second and third were 'LL27 in Conwy North Wales and BD1 in Bradford, just east of the city's University. Average property prices in these postcode areas increased by 37% and 36% respectively. In LL27 the average property price rose from £135,000 between 2011 and 2014, to £185,000, and in BD1 they rose from £42,000 to £57,000. Despite the significant increase in average property prices in these areas, they remain under the national average. Even in London where prices are higher there are pockets with affordable homes with the potential to increase in value such as DA18 in Bexley DA18. The average property price in DA18 was £191,500, up by 32% in the last year. ‘For a first time buyer or a buy to let investor, these up and coming areas can provide an affordable alternative to buying in an already established area,’ said David Blake at Which? Mortgage Advisers. ‘You could see your property grow in value quickly, but it's important to remember that property markets can change, and there is never a cast iron guarantee that values will continue to rise,’ he explained. The organisation says there are a number of signs that an area may be 'on the up' such as being next to currently thriving town and if a local authority plans to regenerate the town centre as well as plans to improve transport links. Other signs include the arrival of new trendy shops, restaurants, cafes and nightlife while skips and scaffolding can be an indication of increased prosperity and improved housing stock. New build properties appearing can often increase the value of surrounding properties as well as new schools being built or current ones climbing Ofsted rankings while new estates agents appearing are also regarded as a sign of a growing property market. Continue reading
British buyers returning to French property market
There is a renewed optimism in France’s residential property market which has led to a significant upturn in sales, according to a new analysis report. A new analysis points out that a more stable economic outlook in the country, which is still popular with overseas buyers, has filtered through into buyer sentiment. The latest data from international real estate firm Knight Frank shows that sales in France doubled between 2014 and 2015, whilst enquiries from prospective buyers increased 87% year on year. It also points out that the figures from the Notaires de France, backs this up, with the most up to date statistics showing sales across the country have increased by 12.5% year on year. The analysis also points out that with favourable mortgage rates of around 2.3%, prices stabilising in most prime markets and the euro weak against both the pound and the US dollar, buyer confidence has strengthened. But this confidence is price dependent. Sales volumes are strongest within the €1 million to €5 million price bracket but transactions above €5 million are slow. According to Mark Harvey, head of Knight Frank’s French department, two indicators underline the extent to which the market has shifted in the last two to three years. Firstly, the performance and convergence of France’s prime prices and secondly excess supply is being absorbed. ‘Not only have prices reached their floor in the majority of France’s key second home markets, but all of our five regions saw prices shift within a range of only 5%five percentage points. For several years we saw a marked disparity between France’s strongest and weakest markets, this has now all but disappeared,’ he said. ‘The excess supply that was evident for several years in areas such as Gascony and Provence has now largely been absorbed back into the market. Add to this the slow recovery in house building it is possible that when prices start to pick up they could do so relatively quickly due to limited stock levels,’ he explained. Another key factor for the recovery of France’s property market is that British buyers are back. The British own more second homes in France at 69,000 than in any other European country. ‘Given the lifestyle on offer, France’s proximity and the currency advantage in recent years it is perhaps no surprise that the British are active once more and represent a key source of demand in all of our markets,’ said Harvey. He also pointed out that equipped with a strong dollar, American buyers are also increasing in number, particularly in Paris and parts of Gascony, whilst Evian continues to be in favour with high net worth buyers from the Middle East, drawn to its lakeside living and easy access to The Alps. Demand from domestic buyers has also strengthened. ‘Faced with lower purchasing power abroad, a more positive political sentiment, cheap finance and good value, particularly in Paris, French buyers are seeking a slice of their capital’s real estate,’ Harvey explained. ‘Across France interest… Continue reading
