Tag Archives: news
Inventory falls in US housing market, especially for first time buyers
There were fewer homes for sale in the United States in June than there were a year ago, increasing competition for potential buyers, the latest research shows. Most of these declines were among the lowest valued homes sought by first time homebuyers, according to the report from real estate firm Zillow. In the lowest priced third of homes for sale, the number of homes on the market fell year on year in 28 of the nation's 35 largest metro areas. By comparison, among the highest priced homes, inventory fell year on year in only 10 metro areas. The total number of homes listed for sale on Zillow in June was down 6.5% year on year but was up 2.1% on a monthly basis. Large metros where inventory has increased the most annually include Austin, up 30.3%, Atlanta up 22.4% and Washington DC up 18.9%. ‘Historically low mortgage rates continue to keep overall ownership affordability very good by historical standards, making it a great time to buy a home, especially with rent becoming increasingly unaffordable,’ said Zillow chief economist Stan Humphries. ‘Finding a house is the last hurdle for many buyers who have saved a down payment and gotten pre-approved for a mortgage. But low inventory levels like those we're seeing across the country can bring the home buying process to a screeching halt. In many markets, there just isn't a lot to choose from in terms of homes on the market,’ he added. Overall, home values in the United States rose 3.3% from June 2014, and 0.3% from May to a Zillow Home Value Index of $180,100. As home values continue to rise, buyers are faced with more challenges in a tighter market, especially in hot markets like Denver, which saw the highest home value appreciation from last year, surpassing even San Jose and San Francisco. Rents have also continued to rise in the second quarter, up 4.3% from this time last year to a Zillow Rent Index of $1,369 with annual growth led by San Francisco with a rise of 14.5% followed by Denver up 13% and San Jose up 12.5%. Metros that are seeing strong appreciation in rents, as well as home values, are experiencing healthy increases in demand with often thriving job markets and sometimes tight inventory supply, the report also says. Of the 863 metropolitan and micropolitan areas covered by the index, some 645 saw annual growth in rents in the second quarter and 527 metro areas saw rents increase from the first to second quarters. Over the next year, home value growth is expected to slow even further, to 2.4% through to the second quarter of 2016, according to the Zillow Home Value Forecast. The report explains that continued steady growth in the real estate market shows signs that the market is maintaining stability after going through the housing bubble and bust of 2007 through 2012. Continue reading
Foreign buyers boosting Spanish property market, especially on Costa del Sol
An increased number of foreign buyers is set to boost the residential property market in the Costa del Sol in Spain, one of the country’s most popular areas with overseas purchasers. A new market forecast report from Instituto de Practica Empresarial (IPE) business school, in collaboration with property company Mar Real Estate, suggests the market could grow by 10% in the area. It also says that the market is set to grow by between 5% and 7% in major cities such as Madrid and Barcelona and 3% in other cities. The IPE says that home prices on the Costa del Sol are already up 10% this year, and now represent 5% of all sales nationwide and if sales continue growing at their present trend, the property market in Málaga province will increase to 20% of the overall Spanish market. The growth is buoyed by foreign demand for holiday homes on the Costa del Sol and the IPE report suggests that surging sales will help reduce the glut of new homes on the coast. Indeed, the excess inventory of new homes is expected to fall by 50% this year. Luxury home sales, in particular, are coming back strongly on the Costa del Sol, according to the IPE report, driven by a better exchange rate in Pounds and Dollars, and the security and stability of Spain. Meanwhile, the latest report from property valuation firm Tinsa says that the Spanish property market is undergoing a widespread recovery. Average property prices fell by 2% year on year in July, the lowest rate of decline since May 2008 but this masks growth areas along the Mediterranean coast in particular with some areas seeing price growth of 2.8% year on year. The data shows that on the Mediterranean coast, where prices have fallen by an average of 47.6% since the economic downturn, the average price of a home has increased by 3.8% since the end of 2014. This is more than large cities and the Balearic and Canary Islands where average prices have risen by 0.2% and 0.9%, respectively. Tinsa data also shows that five of the top 10 most expensive property hotspots are located in the Balearic Islands but Alejandra Vanoli, managing director of Mallorca Sotheby’s International Realty, said that there are prices per square metre in these locations that far exceed Tinsa’s estimations. ‘It’s not unheard of to reach as high as €30,000 per square metre for the most desirable Port Andratx home. Demand is strong from some of the wealthiest individuals and families in Europe, the US and beyond,’ she explained. Tinsa figures also suggest that the Balearics weathered the storm of the Spanish property market price ‘correction’ more positively than the rest of the country. While the average drop in prices across the whole country stands at 42%, in the Balearic Islands most regions registered less than a 35% decline. Palma was also highlighted by Tinsa as property transactions increased by more… Continue reading
Average UK rents up 11.8% year on year, led by the South West and Scotland
The South West of England and Scotland saw rents increase faster than anywhere else in the UK over the three months to July 2015, according to the latest index. The average rent in the UK for new tenancies over the three months to July 2015 was £977 per month or £761 excluding Greater London, the data from the HomeLet index shows. Indeed, the average rent on a new tenancy in London now stands at £1,538 per month, 9.5% higher than a year ago and overall rent price increases are running ahead of inflation and house price growth. The index, which claims to provide the most up to date figures on UK rent prices, shows that rent price growth in the private rental sector is now extremely broad based with average rental values up in every region of the UK except the North West and are 11.8% higher when compared to the same period in 2014. Three regions of the UK have seen rent prices rise at a rate exceeding that of London in the three months to July 2015. In the South West of England rent prices on new tenancy agreements signed in the three months to July were 11.4% higher than in the same period of last year, in Scotland they increased 11.2% and in the South East of England there was growth of 10.3%. In London where, in cash terms, the average rent on new tenancies is more than twice as high as in the rest of the country, prices continue to rise. New tenancies signed over the three months to July came with rents that were 9.5% higher than in the same period of last year. ‘The index demonstrates just how broad based the rise in rent prices has now become, confirming that this is a UK wide trend. Regions which have long been associated with a buoyant rentals sector, such as London, continue to experience rising prices, but rents are also rising in many other parts of the country at similar rates,’ said Martin Totty, chief executive officer of Barbon Insurance Group, parent company of HomeLet. ‘The South West of England, for example, is benefitting from its popularity with those attracted to the area for lifestyle reasons, as well as the strong local economy in many of the towns and cities of the region,’ he pointed out. He explained that over the past few years, price trends in the rental market and house purchase market have been very similar. ‘However, across the first half of this year, house price growth has slowed whilst rental values have continued to increase, perhaps reflecting a change in the relative attractiveness of renting versus buying over this recent period,’ he said. With early signs of the cost of mortgage finance starting to edge up, it will be interesting to see if this recent trend continues or if the change in buy to let mortgage interest tax relief announced in the Summer… Continue reading
