Tag Archives: real estate
Latest data suggests a sustained slowdown in US property prices in main cities
There has been a sustained slowdown in residential real estate prices in major US cities, according to the most recent published data from the S&P/Case-Shiller home price indices. The 10 city and 20 city composites each a slowdown with annual returns of 6.7% in July, falling from the previous month's 8.1% and 8% annual returns, respectively. Nineteen of the 20 metropolitan area indices saw year on year returns worsen, despite continuing to post annual increases, ranging from 0.9% growth in Cleveland to 12.8% growth in Las Vegas, compared to July 2013. Miami and San Francisco were the only other metro indexes that surpassed 10% year on year increases in home prices, posting gains of 11% and 10.3%, respectively. On a month on month basis, just three of the 20 metropolitan areas posted a positive change in seasonally adjusted home prices, while three had no change and the remaining 14 dropped month over month. Las Vegas, Dallas and Charlotte in North Carolina each had positive growth rates in seasonally adjusted home prices compared to June, ranging from 0.1% to 0.3% growth. At the other end of the scale, Minneapolis, Chicago, Detroit and San Francisco saw the largest decreases month on month, ranging from growth rates of negative 1% to falls of 1.6%. ‘The broad based deceleration in home prices continued in the most recent data,’ said David Blitzer, chairman of the index committee at S&P Dow Jones, but pointed out that despite the dropping growth rates, home prices continue to rise at two to three times the rate of inflation. ‘The slower pace of home price appreciation is consistent with most of the other housing data on housing starts and home sales. The rise in August new home sales, which are not covered by the S&P/Case-Shiller indices, is a welcome exception to recent trends,’ he explained. Sales of new single family homes in August increased month on month and year on year, according to the most recent data released jointly by the US Census Bureau and the US Department of Housing and Urban Development. The seasonally adjusted annual sales rate for new single family homes in August was 504,000, 18.0% above the revised July rate of 427,000, and 33.0% above the August 2013 estimate of 379,000. Three of the four regions saw a rise in new home sales on a month on month basis, with the West representing the largest growth since July, posting a 50% increase to a rate of 153,000 units sold. The West's year on year increase of 84.3% from the 83,000 annualized new home sales rate in August 2013 was more than triple the annual growth of any other region. The Northeast saw a large gain in new home sales month on month, with an August annual rate of 31,000 homes, a 29.2% increase from July. The region's year on year performance, however, fell 3.1% from the 32,000 unit sales rate the previous year. The South's pace of 262,000 new homes sold in August represented a 27.2%… Continue reading
UK house prices down 0.6% in September, latest index shows
In another sign that UK property price growth is slowing the latest index figures show that they increased by just 0.6% in September to an average of £187,188. The index from the Halifax also shows that inn the three months to September they were 2.7% higher than in the preceding three months. However, this was the second successive decline in the quarterly rate. Annually, prices were 9.6% higher in the three months to September than in the same three months last year. This was similar to the 9.7% recorded in August and below July’s 10.2%. ‘The recent rapid rise in house prices in some parts of the UK, earnings growth that remains below consumer price inflation and the possibility of an interest rate rise over the coming months, appear to have tempered housing demand,’ said Martin Ellis, Halifax housing economist. ‘This weakening in demand has led to a modest easing in both house price growth and sales. Annual house price inflation may have peaked around 10%. A moderation in growth looks likely during the remainder of 2014 and into next year as supply and demand become increasingly better balanced,’ he added. The Halifax report also points out that mortgage approvals for house purchases, a leading indicator of completed house sales, fell for the second consecutive month in August, to 64,200. According to seasonally adjusted figures from the Bank of England, approvals were 16% below their recent peak in January 2014 and only 1% higher than in August 2013. Also, the number of new buyer enquiries fell for the second consecutive month in August, according to the latest data. Market conditions, as measured by the ratio of house sales to the stock of unsold properties reported by the Royal Institution of Chartered Surveyor's monthly survey loosened slightly in August as a result of lower sales. This suggests a better balance between supply and demand is materialising which, if sustained, would help to dampen the pace of house price growth. According to Jonathan Hudson of West End estate agent in London, Hudsons Property, the new figures are not a surprise. ‘House prices in London haven’t risen in the same period so whilst this shows growth nationally, one shouldn’t forget that the figures mainly represent property transactions which were agreed some time before. Therefore, it will be interesting to see how the London slow down affects the UK market over the next quarter,’ he said. ‘Prices in the three months to September being 9.6% higher than in the same three months a year earlier, is again not surprising given the huge rises we have seen in the UK, especially over the last 10 months in areas which haven’t seen growth since 2008,’he pointed out. ‘The 0.6% increase between August and September shows transactions that were agreed sometimes months before and completed in this time frame,’ he added. Continue reading
Home sales in Spain up over 12% on a quarterly basis
The number of homes sold in Spain increased by 12.1% in the second quarter compared to a year earlier and was boosted by an increasing number of foreign buyers. Data from the Ministry of Public Works shows that a total of 91,338 homes were sold in the quarter, the best second quarter since 2010. It also shows that 16.4% of the sales were to foreign residents, as the number of purchases by non-Spanish citizens rose for the 12 quarter in a row. In the 12 months from July 2013 to June 2014, some 337,115 homes were sold in Spain, a 12.2% increase from the same period a year earlier, according to the Ministry’s data. The gains were led by a 12.2% increase in the Canary Islands. Other areas continued to see sales declines but much more moderate than in previous quarters. Meanwhile, a judge in Almeria has awarded €135,000 damages to three British families who bought illegal homes a decade ago in Albox, in a case which might open the door for similar legal action around Spain. The judge ruled that they bought their homes in ‘good faith’ and decided that they deserved compensation for living with the possibility of losing their home. The judge also awarded €7,800 to another British family, whose savings were trapped in a home that was half built before work was stopped. It is estimated that more than 250,000 homes were built illegally in Andalusia during the boom years, creating an emotional and complex issue for local authorities. A plan was approved by the ruling junta in 2012 to legalise homes, but there has been little progress. A few weeks ago junta president Susana Díaz announced an additional 25,000 homes could be saved from destruction, under a new amendment to the plan. But there is still uncertainty about the fate of and ultimate legal status of the homes. For years owners, many of them expats, have not known whether their homes would be demolished. In many cases they could not rent or resell their property with the legal case ongoing. Last month prosecutors called for the demolition of 93 homes in Albox but the local mayor said the homes would likely be saved by the new legislation. ‘This whole drama of illegal homes remains a terrible stain on the reputation of Andalusia as somewhere to invest, discouraging fresh money and ultimately impoverishing the local community,’ said Mark Stucklin of Spanish Property Insight. ‘People who bought in good faith and ended up with illegal homes through no fault of their own have been treated appallingly by the Spanish authorities,’ he added. ‘It’s very probable that the homes might be legalised in a time frame that depends upon administrative procedures,’ the sentencing judge said but the judge in the Albox case went a step further, awarding damages to the owners. Developers and architects are liable for the payments. But if they can’t pay, the judge ordered the local town hall to pick up the bill for failing to control the situation and… Continue reading
