Tag Archives: real estate
Average property prices up 6.1% in Canada but sales fall
Average property prices across Canada have increased by 6.1% year on year but this figure is being affected upwards by growth in values in Vancouver and Toronto. Indeed the latest monthly property report from the Canadian Real Estate Association shows that excluding data from Greater Vancouver and Greater Toronto results in an annual average price increase of 2.9%. The report also shows that nationally sales fell by 2.1% month on month in September and transactions are up just 0.7% compared to September 2014. Sales were down in more than half of all local markets led by declined in Vancouver, Calgary and Toronto. Fewer homes are going on the market. The number of newly listed properties fell 2.1% from August to September but overall the housing market remains balanced, according to the report. ‘Sales are off the peak reached earlier this year but are still running strong, particularly in British Columbia and Ontario. That said, sales strength varies considerably among markets and price segments across Canada,’ said CREA president Pauline Aunger. CREA chief economist Gregory Klump pointed out that although national sales activity was not as strong in September as it was earlier this year, a lack of supply in some parts of the country is likely keeping a lid on transactions ‘Greater Toronto and Greater Vancouver made sizeable contributions to the monthly decline in national sales activity. They also rank among the tightest urban housing markets in the country due to a shortage of inventory and supply of land on which to build, which is why prices there continue to grow strongly,’ he explained. However, sales in September 2015 reached the second highest on record for the month, standing just 0.3% below the record set in September 2009. The data also shows that actual, not seasonally adjusted, sales were up from year ago levels in a little over half of all local markets, led by the Lower Mainland region of British Columbia. Calgary posted the largest year on year decline in activity compared to the record set last year. The national sales to new listings ratio was 56.8% in September. With sales and new listings having posted monthly declines of equal magnitude in September, the sales to new listings ratio held steady compared to August. A sales to new listings ratio between 40% and 60% is generally consistent with balanced housing market conditions, with readings above and below this range indicating sellers’ and buyers’ markets respectively. The ratio was within this range in half of local housing markets in September. Of the remainder, the majority breached the 60 per cent threshold in September and consisted almost entirely of markets in British Columbia and those in and around the Greater Toronto. The number of months of inventory is another important measure of the balance between housing supply and demand. It represents the number of months it would take to completely liquidate current inventories at the current rate of sales activity. There were 5.7 months of inventory on… Continue reading
UK residential rent growth slows to match pace of house price growth
Rent price rises in the UK have slowed to match the pace of house price growth in the country after nine months of sustained faster growth, the latest index figures show. It means that rent prices are now 8.5% higher than a year ago for the three months to September 2015 after six months of annual rises over 10%, according to the data from HomeLet. The average rent in the UK for new tenancies in the period was £995 per month but in Greater London it was £1,555 per month although rents dropped here on a month on month basis for the first time since February 2015. The index report suggests that deflation across the economy, and rising real incomes, mean the slowdown in rents could be temporary. A breakdown of the figures shows that nine out of 12 UK regions are still seeing rent prices rise on an annual basis, with the largest increases seen in Scotland at 8.4%, the East Midlands at 7.7% and Greater London at 6.6%. The figures also show three regions in negative annual price movement, with prices in the North West 4.6% lower than a year ago, 2.2% lower in East Anglia and 1.4% lower in Northern Ireland. Comparing September figures to the previous month, the index reveals that only three regions have seen rent prices rise since August. In the three months to September 2015 only Scotland, the East Midlands and West Midlands have seen prices rise by 1.2%, 1.4% and 1.4% respectively. Every other region of the UK has seen rent prices fall modestly in the three months to September 2015, with the largest price reductions seen in the South West, the North East and North West with a fall of 2.4%, 2.3% and 2.2% respectively. ‘The UK economy has dipped into negative inflation which is a boost to consumers' spending power and, ultimately, their real income. Affordability is an important factor in determining rents,’ said Martin Totty, chief executive of Barbon Insurance Group, owners of HomeLet. ‘Depending on what happens with inflation and real incomes over the coming months, could have a bearing on future rental price trends especially where, in certain areas of the country, the supply of rental properties is not keeping pace with demand from those wishing to be private sector renters,’ he added. Continue reading
Access to a mortgage still regarded as a major barrier for new UK home owners
Just 12% of UK adults believe access to mortgages has improved in the past five years, but not enough, despite recent moves to open up the mortgage market, new research has found. This is a substantial drop from 29% recorded in similar research commissioned by Precise Mortgages last year. Despite this negative sentiment, the report witnessed improvement in some of the wider issues facing home owners. Over the last year UK renters, in general, see saving for a deposit, finding an affordable property and getting a mortgage approved less of a barrier to owning their own home than in 2014. However, some 49% of UK adults believe that mortgage rates only favour those with large deposits and 36% feel that mortgages are too difficult to obtain for first time buyers. But 76% of renters aged between 18 and 24 regard saving enough for a deposit as a barrier to owning their own home, and 67% say finding an affordable property is a barrier. With the average cost of a property now upward of £200,000and house price inflation set to hit 6% this year, affordability is likely to remain a challenge for first time buyers, the research suggests. Despite an uphill battle some 41% of those renting aged 18 to 24 still hope to own their own home in the next five years. However, amongst the older demographic the situation differs, with only 14% of renters aged 45 to 54 planning to own a property in the next five years, with the majority at 67% having no aspirations to be a home owner. ‘Prospective home buyers are feeling more positive about their ability to save and find an affordable property, but with consumer sentiment towards mortgage accessibility falling in the last year, the industry has a vital job to do in reassuring prospective home owners,’ said Alan Cleary, managing director of Precise Mortgages. ‘The mortgage industry should serve prospective homebuyers, and we must dispel the belief that lenders continue to favour large deposits and are unforgiving of those with blemishes on their credit record,’ he explained. ‘There are specialist lenders in the market ideally placed to help navigate the obstacles potential home buyers face, but there is still more to be done across the wider industry. Ensuring that all viable home owners have access to mortgage products should be the aim of the industry as a whole,’ he added. Continue reading
