Tag Archives: news
US existing home sales jump to highest pace for almost six years
Existing home sales in the United States increased by 5.1% in May year on year to their highest pace in nearly six years, partly fuelled by an increase in first time buyers. The latest data from the National Association of Realtors shows that all regions, led by the North East, saw sales increase. They have risen year on year for eight consecutive months and are 9.2% above a year ago. The median existing home price for all housing types in May was $228,700, which is 7.9% above May 2014, the 39th consecutive month of year on year price gains. According to NAR chief economist Lawrence Yun May home sales rebounded strongly following April's decline and are now at their highest pace since November 2009. ‘Solid sales gains were seen throughout the country in May as more home owners listed their home for sale and therefore provided greater choices for buyers,’ he said but added that overall supply still remains tight. ‘Homes are selling fast and price growth in many markets continues to teeter at or near double-digit appreciation. Without solid gains in new home construction, prices will likely stay elevated even with higher mortgage rates above 4%,’ he explained. The data also shows that total housing inventory at the end of May increased 3.2% to 2.29 million existing homes available for sale, and is 1.8% higher than a year ago. Unsold inventory is at a 5.1 month supply at the current sales pace, down from 5.2 months in April. The percent share of first time buyers rose to 32% in May, up from 30% in April and matching the highest share since September 2012. A year ago, first time buyers represented 27% of all buyers. ‘The return of first time buyers in May is an encouraging sign and is the result of multiple factors, including strong job gains among young adults, less expensive mortgage insurance and lenders offering low down payment programmes,’ said Yun. ‘More first time buyers are expected to enter the market in coming months, but the overall share climbing higher will depend on how fast rates and prices rise,’ Yun added. With demand continuing to far exceed supply, properties typically stayed on the market for 40 days in May, up from 39 days in April but the third shortest time since NAR began tracking in May 2011. Short sales were on the market the longest at a median of 131 days in May, while foreclosures sold in 56 days and non-distressed homes took 38 days. Some 45% of homes sold in May were on the market for less than a month. All cash sales were 24% of transactions in May for the third straight month and are down considerably from a year ago when they were 32%. Individual investors, who account for many cash sales, purchased 14% of homes in May, unchanged from last month and down from 16% in May 2014. Some 67% of investors paid cash in May. Distressed sales, that… Continue reading
London borough of Kensington and Chelsea has most expensive homes in UK
Boroughs in London continue to dominate the UK’s list of most expensive places for property on a per square metre basis, led by Kensington and Chelsea, new research shows. However, there are pockets outside Southern England where property fetches a high price per square metre, including Altrincham in Cheshire, a number of towns in Warwickshire and the Scottish cities of Edinburgh and Aberdeen. Overall there has been a marked widening in property prices per square metre between southern England and the rest of Britain since 1995, according to the research from the Halifax. Indeed, prices per square metre have risen by 388% in Great London compared with a national increase of 227%. Kensington and Chelsea is Britain's most expensive area with an average price of £11,635 per square meter, nearly six times the national average of £2,033. The borough is the only area in Britain with an average price above £10,000 per square meter with Westminster having the next highest prices at £9,571. Some 16 areas, all in Greater London, have an average price in excess of £5,000 per square meter, four more than last year. Outside southern England, Altrincham in Cheshire remains the most expensive town with an average price of £2,446 per square meter and is followed by a cluster of towns in the West Midlands with Solihull at £2,367, Warwick at £2,363 and Leamington Spa at £2,353. The Scottish cities of Edinburgh at £2,297 and Aberdeen at £2,281 are the next most expensive areas outside southern England. Aberdare in south Wales has the lowest average price, at £910 per square meter. This is less than one tenth of the average price per square metre in Kensington and Chelsea and all 10 of the towns with the lowest prices per square metre are outside the south of England. Four of the ten towns with the lowest average price per square metre are in Scotland with Wishaw at £926, Airdrie at £998, Greenock at £1,004 and Coatbridge at £1,004. Three are in Wales with Merthyr Tydfil at £967 and Neath at £1,005 in addition to Aberdare. The three English towns with the lowest home prices on a per square metre basis are Accrington at £990, Scunthorpe at £1,022 and Blackpool at £1,052. The 10 areas recording the highest house price growth on a per square metre basis over the last five years are all London boroughs. Hackney at 71% recorded the biggest increase over the five year period closely followed by Southwark at 70%. Nationally, house prices per square metre have risen by 18% since 2010 from an average of £1,719 to £2,033 in 2015 with increases across all regions. Greater London has experienced substantially faster growth than elsewhere in Britain with an average increase of 45%. The South East at 22% recorded the next biggest rise. Price increases have been much more modest in many other parts of the country with the smallest rises in the North at 3%… Continue reading
Canadian home sales expected to see gradual rise this year and into 2016
Home sales in Canada are set to see a continued gradual improvement and housing market but oil prices are likely to continue to weigh on the economy and thus real estate confidence. The latest forecast for home sales activity from the Canadian Real Estate Association (CREA) says that in the Prairie region in particular lower oil prices are dampening consumer confidence and side lining potential home buyers. Home sales elsewhere in Canada are continuing to evolve mostly as expected, with the exception of a slower than expected spring market in Nova Scotia due to extraordinarily inclement weather and stronger than expected sales activity across much of British Columbia. It says that low rise property markets remain tight in parts of British Columbia and Ontario. These are the only two provinces where a shortage of listings for low rise homes is expected to fuel average price gains above inflation this year. In other provinces, listings have begun to decline but remain elevated. Average prices across the Prairies, Quebec and the Atlantic region are unlikely to see much in the way of price growth over the forecast horizon as sales gradually deplete listings. The forecast for national sales in 2015 has been revised upward, reflecting stronger than anticipated activity in British Columbia. National sales are now projected to rise by 1.3% to 487,200 units in 2015, which is slightly above its 10 year annual average. British Columbia is projected to post the largest annual increase in activity in 2015 at 12.2% while Alberta and Saskatchewan are expected to post the largest annual sales declines with a fall of 18.2% and 12.9% respectively. Modest changes in annual home sales are forecast for all other provinces. The forecast for national average home price growth has been revised upward to $429,400 for an annual increase of 5.2% in 2015. This reflects forecast average price gains in British Columbia and Ontario together with a projected increase in their proportion of national sales. British Columbia is expected to be the only province where average price rises faster at 8.5% than the national average, while the rise in Ontario’s average price of 5.6% is predicted to be roughly in line with the national increase. Average prices are projected to remain largely stable in other provinces this year, with annual changes ranging between plus or minus 1%. The exception is Alberta, where average price is forecast to slip by 2.8% amid a pullback in higher priced property sales activity. In 2016, national sales activity is forecast to reach 491,200 units, a further annual gain of 0.8%. The increase reflects an anticipated rise in sales activity in Alberta and Saskatchewan, in line with a gradual improvement in their economic outlook. Although sales in British Columbia are expected to remain strong in 2016, it is the only province where they are forecast to moderate by 2.9% due to stretched affordability. ‘Strengthening economic prospects should translate into slow and steady gains in… Continue reading
