Tag Archives: news
Property prices up 9.6% year on year in Canada, sales up 11%
Average residential property prices in Canada were 9.6% higher year on year in June while sales activity is up 11% compared to a year ago, the latest index data shows. On a monthly basis national homes sales edged back, however, down 0.8% from May to June, according to the index from the Canadian Real Estate Association (CREA). But sales levels in May and June marked the strongest monthly readings in more than five years and June sales were up from the previous month in about half of all local markets, led by increases in Hamilton-Burlington and in the Durham Region of the Greater Toronto Area. And average prices are being pulled up by growth in Greater Vancouver and Greater Toronto. Without these two locations then year on year growth is just 3.1%. Also, the monthly increase in sales there was offset by monthly sales declines in Ottawa and Montreal. The actual, not seasonally adjusted, national average price for homes sold in June 2015 was $453,560 but excluding Greater Vancouver and Greater Toronto it was a more modest $346,904. Low interest rates are helping boost consumer confidence and home sales activity this summer, according to CREA president Pauline Aunger. But she added that low interest rates are benefiting sales in some areas more than others. All real estate is local, with trends affected by a combination of local and national factors. Gregory Klump, CREA's chief economist, explained that records sales prices in Greater Toronto would be even higher were it not for an ongoing shortage of listings for single family homes in the area. ‘The combination of strong demand and a shortage of listings is continuing to fuel single family home price increases,’ he added. The number of newly listed homes for sale was little changed, down a marginal 0.2% in June compared to May, marking the third consecutive month in which they remained stable. There was roughly an even split between the number of local markets showing an increase in new listings and those showing a decline. The national sales to new listings ratio was 57.2% in June. Although little changed from its reading the previous month, it is up from the low of 50.4% in January when it reached its most balanced point since March 2013. The ratio has risen steadily along with sales over the first half of the year while new supply has remained stable. A sales to new listings ratio between 40 and 60 per cent is generally consistent with balanced housing market conditions, with readings above and below this range indicating sellers' and buyers' markets respectively. Continue reading
House price growth confidence hit new high in UK after general election
Confidence in the outlook for house price growth in the UK hit its highest level in four years following the general election in May, but dropped back last month. The dip in confidence in June comes despite continued rise in real wage growth, together with record low numbers of homes available for sale pushing average house prices over £200,000 for the first time ever, according to the Housing Market Confidence Tracker report from the Halifax. House Price Optimism (HPO) hit +68 in May 2015, and although it slipped back slightly in June to +64 it remains substantially higher than at the beginning of the year when it was +52 in the January survey. Nevertheless, while the May high was short lived, the percentage of Britons predicting an increase in the average property price of more than 5% over the next 12 months has still risen from 34% to 38% in the last quarter, comparing the March and June 2015 measures, respectively. This increased optimism also corresponds with a fall in the net figure for buying sentiment from +35 in February 2015 to +25 in June 2015. Some 56% said in June they think it will be a good time to buy property over the next 12 months, compared to 61% who said this in February 2015. At the same time there’s been an increase in the net figure for selling sentiment from +27 in February 2015 to +32 in June 2015. With the Governor of the Bank of England saying improving economic figures means an interest rate rise has moved closer, 48% expect mortgage interest rates to be higher in 12 months’ time compared to 45% in the first quarter of the year. Londoners are less likely than those in any other region to say it is a good time to buy at 38% compared with 56% of Britons overall, making it the only region where the proportion who think the next 12 months will be a bad time to buy exceeds the proportion who think it will be a good time. Those in the South East are more confident than in any other region that house prices will be higher in 12 months’ time at 90% compared to 69% of Britons overall, with those in the North East and the West Midlands the least likely to say this, both at 59%. ‘Economic growth, together with increasing real earnings growth and historic low mortgage rates are all supporting the continued rise in house price optimism. It’s not been a smooth increase though as while there was a noticeable spike in optimism straight after the General Election result, this has now fallen off slightly,’ said Martin Ellis, housing economist at the Halifax. ‘A key factor in maintaining optimism over house price growth has been the fact that the stock of homes available for sale is currently at record low levels. If this growth is to be sustainable then we need to… Continue reading
Average UK house prices now above peak of 2007, latest data shows
Average house prices across the UK have now exceeded their Autumn 2007 peak and further increases are expected, according to the latest research figures. Findings of the research by the Connells Group, which has a network of over 520 estate agencies across the country, show a 2% uptick in prices compared to the peak. This comes after the value of property rose for the fourth consecutive month and the data also indicates a 4.5% increase on house values in the second quarter of this year compared to the first three months of the year. This exceeds the 3% growth that was forecast by Connells and overall the figures are very positive news, according to David Plumtree, Connells Group Estate Agency chief executive. ‘The economic growth, strong market confidence and post-election certainty has galvanised buyers and sellers to create a buoyant housing market. It certainly is a seller’s market and those looking to move should capitalise on this,’ he added. Separate research by online estate agent eMoov has found that demand for London property has increased for the first time this year, having declined steadily since June 2014. Demand across London’s boroughs has climbed by 7% since March, although it is still down 15% since this time last year. ‘It doesn’t surprise me that despite the market cooling in some of the capitals more prestigious boroughs, house prices in London have continued to rise. It’s long been accepted that London is one of the most expensive cities to live in the world, let alone the UK, but now that the average house price has tipped above the half a million mark, it really highlights how out of control the property market has become here,’ said eMoov chief executive officer Russell Quirk. He also pointed out that house prices outside of London and the South East have continued to increase by 5.2%, and this shows that the London exodus for more affordable property is continuing. ‘Hardly surprising given the new London average and the resulting ripple effect, as buyers search for a realistic way to get on the UK property ladder,’ he concluded. Continue reading
