Tag Archives: real estate
Demand sees US pending home sales reach highest level since August 2013
Improved buyer demand at the beginning of 2015 pushed pending home sales in the United States in January to their highest level since August 2013, according to the latest figures to be published. The data from the National Association of Realtors also shows that all major regions except for the Midwest saw gains in activity in January. The Pending Home Sales Index, a forward looking indicator based on contract signings, climbed 1.7% to 104.2 in January from an upwardly revised 102.5 in December and is now 8.4% above January 2014, the fifth month of year on year gains with each month accelerating the previous month's gain. Lawrence Yun, NAR chief economist, said that for the most part buyers in January were able to overcome tight supply to sign contracts at a pace that highlights the underlying demand that exists in today's market. ‘Contract activity is convincingly up compared to a year ago despite comparable inventory levels. The difference this year is the positive factors supporting stronger sales, such as slightly improving credit conditions, more jobs and slower price growth,’ he explained. Yun pointed out that there are now more favourable conditions for traditional buyers entering the market. All cash sales and sales to investors are both down from a year ago, creating less competition and some relief for buyers who still face the challenge of limited homes available for sale. ‘All indications point to modest sales gains as we head into the spring buying season. However, the pace will greatly depend on how much upward pressure the impact of low inventory will have on home prices. Appreciation anywhere near double digits isn't healthy or sustainable in the current economic environment,’ Yun added. The index in the Northeast increased by 0.1% to 84.9 in January, and is now 6.9% above a year ago. In the Midwest the index decreased 0.7% to 99.3 in January, but is 4.2% above January 2014. Pending home sales experienced the largest increase in the South, up 3.2% to an index of 121.9 in January, the highest since April 2010, and 9.7% above last January. The index in the West rose 2.2% in January to 96.4 and is 11.4% above a year ago. Total existing homes sales in 2015 are forecast to be around 5.26 million, an increase of 6.4% from 2014. The national median existing home price for all of this year is expected to increase around 5%. In 2014, existing home sales declined 2.9% and prices rose 5.7%. Continue reading
Residential property prices in England and Wales up 1.3% in January
Home prices in England and Wales increased by 6.7% year on year in January and were up 1.3% month on month, according to the latest land registry figures. This takes the average property value in England and Wales to £179,492 compared with the peak of £181,101 in November 2007. A breakdown of the figures shows that London experienced the greatest increase in its average property value over the last 12 months with a rise of 12% while the North West experienced the greatest monthly rise of 2.6%. The North East saw the lowest annual price growth with a rise of just 0.1% and Yorkshire and the Humber saw the largest monthly price fall of 1.5%. The data also shows that the most up to date figures available reveal that the number of completed house sales in England and Wales decreased by 19% to 68,107 compared with 83,726 in November 2013. The number of properties sold in England and Wales for over £1 million decreased by 18% to 869 from 1,060 a year earlier and repossession volumes in England and Wales decreased by 47% to 687 compared with 1,286 in November 2013. London was the region with the greatest fall in repossession sales. Peter Rollings, chief executive officer of Marsh & Parsons, explained the figures confirm that house price growth regrouped in January after an underwhelming end to 2014. ‘All the fundamentals are in place to help the market get back into its stride, and stamp duty savings and competitive mortgages rates are already enticing buyers and sellers to the market and upping demand,’ he said. ‘This is good news for the wider housing recovery, which at the moment is still largely restricted to the South East as many other regions have a long way to go before they are within sights of the towering annual growth witnessed in the capital. In these places, access to Help to Buy and more affordable properties are the key stimulants invigorating demand at the entry level,’ he pointed out. He also pointed out that on a monthly basis, the London market is back to more reasonable conditions after the whirlwind of last year, allowing buyers some valuable let up from cut throat market conditions. ‘A greater supply of properties on the market is music to the ears of London home buyers, and this optimism is feeding into a healthy demand. A feel good factor at the culmination of the general election should get the top tiers of the property market moving again as the uncertainty clears, and this is likely to mitigate any shortfall in the meantime,’ he added. According to Nick Leeming, chairman of Jackson Stops & Staff, the statistics reflect market sentiment from two to three months ago, when the London market was cooling but the country market relatively stable. ‘It is not surprising therefore that, while London showed an annual increase of 12%, January’s figures showed a small decrease and this… Continue reading
New starter home initiative launched in the UK
A new website has been launched in the UK for first time buyers where they can register in buying a new starter home under a new government initiative. The starter-home.co.uk website comes as new rules have cut planning requirements for the new starter homes, allowing house builders to slash 20% off the usual price and building on the first properties is expected to start within months. It is the latest major push from the government to boost home ownerships and build more homes and it is claimed that there is the potential for discounts of around £100,000 per house. With average house prices for first time buyers in England standing at around £218,000, a new starter home could save young first time buyers across the country an average of £43,000 while helping to get them onto the housing ladder. The plans will allow young first time buyers the opportunity to secure a new starter home at a 20% discount to the market price and thanks to changes in planning policy, builders that develop commercial and industrial land that is either unusable or surplus for the new starter homes will be able to save on costs by freeing them from the requirement to provide affordable housing. In return, developers will have to offer the homes at a minimum 20% discount on the market price to first time buyers who must be aged under 40. Leading home builders and councils have already have said they would consider bringing forward land to develop the new homes from this year, and from today will be able to start submitting their plans to get work started and pass the savings onto home buyers as soon as possible. As well as reducing the prices of properties for young buyers, a design panel, including world class architects Sir Terry Farrell and Sir Quinlan Terry have drawn on housing designs from across the country for home builders to consider for starter homes developments. Aimed at making sure the new homes are attractive properties that can meet the demands of modern life, the panel’s draft report highlights at a range of exemplar new build styles, which in time it is hoped will become the default approach for starter home developments. They aim to be well proportioned homes, homes that fit in with existing local housing styles, and homes that get the details right with good parking and community spaces. ‘A 20% discount off the price could be a real game-changer for many aspiring home owners. My message is clear: we are on your side and we will help you fulfil your dream of buying your first home,’ said Prime Minister David Cameron. Communities Secretary Eric Pickles said that the number of first time buyers is already at a seven year high and these starter homes will help even more people realise their dream of home ownership. Sir Terry Farrell, founding partner at Farrells, said he believes that the templates developed by the government’s Housing… Continue reading
