Tag Archives: real estate
Canadian property prices up an average of 6.3%, led by Toronto and Vancouver
Residential property sales in Canada edged upwards 1% month on month in February while sales are now up 6.3% year on year, according to the latest data from the Canadian Real Estate Association. The monthly sales increase was led by Greater Vancouver, the Okanagan region, and Greater Toronto. Gains there offset sales declines elsewhere, with more than half of all local markets having posted weaker sales in February compared to January. Year on year price growth decelerated in February for all housing types tracked by the index except two storey single family homes, which again posted the biggest year on year price gain at 6.63%. This was followed by terraced homes with growth of 4.4%, and single storey single family homes at 4.34%. Price growth remained more modest for apartment units at 2.77%. Price gains varied among housing markets tracked by the index. Greater Toronto saw growth of 7.84%, Greater Vancouver 6.38%, and Calgary with 5.96% posted the biggest year on year increases. Even so, the increase in Calgary was far smaller than gains posted last year and the smallest since December 2012. In other markets from West to East, prices were up compared to year ago levels by between 2% and 2.5% in the Fraser Valley, Victoria, and Vancouver Island, while holding steady in Saskatoon, Ottawa, and Greater Montreal, and falling in Regina and Greater Moncton. The CREA index report points out that the national average home price remains skewed by sales activity in Greater Vancouver and Greater Toronto, which are among Canada’s most active and expensive housing markets. Excluding these two markets from the calculation, the average price is a relatively more modest $326,910 and the year on year gain shrinks to just 1.5%. ‘A number of buyers across the Prairies stayed on the side lines in February. That’s likely to remain an important part of the national housing story until the outlook for oil prices starts improving. Meanwhile, home sales in British Columbia and much of Ontario are improving,’ said CREA president Beth Crosbie. Actual, not seasonally adjusted, activity in February stood 2.7% above levels reported in the same month last year, but remained 5% below the 10 year average for the month of February, the data also shows. ‘Sales came in below the 10 year average for the month of February in two-thirds of all local markets. That said, the opposite was true in a few large urban markets in British Columbia and Ontario despite a shortage of listings there, which is fuelling prices higher,’ explained Gregory Klump, CREA’s chief economist. The number of newly listed homes fell 2.5% in February compared to January, led by Greater Vancouver, the Okanagan region, and Calgary. New listings in Calgary have retreated in recent months after having climbed sharply toward the end of last year. The national sales to new listings ratio was 52.2% in February. With sales up and new listings down, this marked an increase from 50.4% in January. A… Continue reading
Average new asking prices in UK up 1% in March
The average price of property coming onto the market in the UK increased by 1% or £2,748 this month compared with February but it is a more muted rise than normal, the latest index shows. However, the rise means that the average new seller asking price is just £30 below the June 2014, according to the index from Rightmove. According to Rightmove the upcoming general election could be to blame for the lower than expected rise which was down from 2.1% growth in February. It says that agents are reporting an increase from buy to let investors and this may be due to the forthcoming changes to pensions which means they can cash in their pension pots and there is a lot of interest in using this to buy property. The data also shows that the year on year rate of increase has fallen from 6.6% in February to 5.4% in March and the report points out that high demand and larger buyer deposits are reducing the impact of the new restrictions on mortgage lending introduced in the Mortgage Market Review last year. ‘The distraction and uncertainty of an election typically force sellers to price more keenly, though this is often short-lived. The MMR introduced in April 2014 laid out a much needed longer term framework for responsible lending, but within a year its dampening effects have been muted by high demand outstripping supply in many locations, and by buyers putting down larger deposits,’ said Miles Shipside, Rightmove director and housing market analyst . ‘The price of property coming to market is now just £30 off the record set nine months ago. The MMR has been a positive restraint on what buyers can afford to pay and has assisted in lessening the price rise pace. However, with new build levels remaining low and only a small increase in properties coming to market compared to last month, the supply side is still a critical but missing part of the jigsaw if pent-up demand is to be satisfied,’ he explained. The index report also shows that interest in searching is at an all-time high, with a record eight million enquiries sent to Rightmove agents in the first two months of 2015, and Rightmove’s busiest ever day for activity being recorded towards the end of February. ‘There is still high demand for the right property at the right price with agents reporting that quality stock is selling well despite some election jitters. Rightmove recording nearly 59 million page views in one day suggests that home movers have a confident outlook, while remaining choosy about what they will buy. Attractive long fixed term mortgage rates are obviously another great boost to positive sentiment,’ Shipside said. ‘While some of the heat has been taken out of the market by limiting loan criteria and size through the MMR and the subsequent actions of the Bank of England’s Prudential Regulation Authority, controls limiting buyer affordability appear not to be restraining… Continue reading
UK home owners waiting longer than expected to move up housing ladder
Some 33% of home owners in the UK expected to be further along the housing ladder than they are now, according to new research, rising to 44% for first time buyers. The survey from Lloyds Bank also found that 83% believe home owners have to wait a lot longer to reach their long term family home than a decade ago while 36% of first time buyers hope to achieve their housing aspirations by the time they are 45. Despite recent improvements in the housing market, 40% still consider the housing market to be having an impact on aspirations, although this figure has fallen since 2013 when it was 47% and 2012 when it was 53%. Almost half, 48%, of first time buyers think that the housing market will have an impact on how long it takes them to reach their family home. Even with anticipated delays in moving up the housing ladder, 44% expect not to make any compromises and believe their long term home is a realistic achievement and 18% expect it to be a better property than their childhood home. ‘Many current home owners clearly still feel that they are not progressing up the ladder as quickly as they would like, with higher house prices in some regions meaning people are waiting longer to move into to their long term family home,’ said Andy Hulme, mortgages director at Lloyds Bank. ‘Despite this, almost two thirds still believe they’ll be in their long term home in less than five years, with the vast majority thinking this will only require one more move,’ he added. The research also shows that despite an increase in the number of people feeling they need a bigger property, the house that the majority of home owners in the UK aspire to own has three bedrooms with 43% seeking this kind of property. Some 24% want four bedrooms, with many people aspiring to have nice gardens, conservatories and high quality kitchens and bathrooms. Some 63% of home owners believe they will reach their long term family home in less than five years while 64% of those who are still waiting to be in their long term home think they will only have to make one more move to achieve their housing aspirations. Applicants for three bed properties, which are seen by many as long term homes, are on average 35 years old in London and the South East. This is a year older than the national average. These regions remain the least affordable in the UK for three bed houses, as a result of the high house prices. In contrast, long term family homes in the North and Wales are more affordable with the average three bed property costing £129,447 in the North and £135,070 in Wales. Average incomes of the applicants are lower at £38,606 and £36,390 respectively, but long term homes are still more affordable in both regions. Continue reading
