Tag Archives: real estate
Distressed sales fall in the US as transaction increase overall, latest index shows
US home sales increased by 8% year on year in February and 3.8% month on month, according to the latest data from CoreLogic. Sales rose to a non-seasonally adjusted annual sales pace of 4.09 million and the monthly rise was the highest sales pace for the month of February since 2007. Improvement in February home sales were led by newly constructed homes which increased by 23%, followed by re-sales which increased by 18%, the data also shows. Distressed sales, which include real estate owned (REO) and short sales, were on the decline, continuing the trend in the shift towards healthy home sales. Distressed sales accounted for 15.6% of total sales in February, a strong improvement from the same time a year ago when they made up 22.8% of total sales. REO sales were down 16% year on year, making up 11.4% of total sales while short sales were down 44% year on year, at just 4.3% of total sales in February. At its peak, the distressed sales share totalled 32.7% of all sales in January 2009, with REO sales making up 28.2% if that share. The firms says that the more recent shift away from REO sales is a driver of improving home prices, as REOs typically sell at a larger discount compared to healthy sales than do short sales. ‘There will always be some amount of distress in the housing market, so one would never expect a 0% distressed sales share, but the pre-crisis share of distressed sales was traditionally about 2%,’ the report explained. Michigan had the largest share of distressed sales of any state at 30.5% in February, followed by Illinois at 26.6%, Nevada at 26%, Florida at 24.8% and Georgia at 23.5%. California saw a 17.8% point drop in the distressed sales share, the largest of any state. Of the largest 25 Core Based Statistical Areas (CBSAs), Chicago-Naperville-Arlington Heights had the largest share of distressed sales at 29.5% followed by Miami-Miami Beach-Kendall at 27.9%, Las Vegas-Henderson-Paradise at 27.2%, Orlando-Kissimmee-Sanford, at 27% and Tampa-St. Petersburg-Clearwater at 25.5%. Sacramento-Roseville-Arden-Arcade had the largest drop in its distressed share, falling by 21.7% from 41.6% in February 2013 to 19.9% in February 2014. Continue reading
Over half wanting to move home in the UK can’t see it happening this year
Over 50% of people in Britain ay they are considering a house move but most can’t see themselves being in a position to do so in the next 12 months, according to new research The survey by home insurance company Gocompare also found that those hoping to move have been waiting 3.6 years on average and 21% are worried that they may never afford to buy a house or move. It is the costs associated with buying and moving home, together with high house prices, which are cited as the main barriers to moving. Overall, the biggest obstacles to the nation’s housing hopes are the cost of buying and moving with 16% concerned, followed by 16% concerned about high house prices in the area they want to buy and 15% worried about the cost of running a house. Also, 14% raised concerns about saving a deposit, 10% about job security or income and 9% said they perceive there is a lack of availability of the type of house they want to buy and this is putting them off. Of those considering a move or buying a house some 15% think that they are unlikely to get moving with their house plans within the next five years. Most, 77%, are aged 25 to 34 years. Just under a quarter, 24%, of this age group say that getting a deposit together is the main thing holding them back. The research shows that 28% of 18 to 24 year olds and 28% of 25 to 34 are the most worried that they will never be able to afford to buy a house or move. A quarter of 35 to 44 year olds also fear that they will never be able to buy or move home. Some 39% of 55 to 64 year olds and a quarter of those aged 65 or over are considering moving. In addition to the costs involved with buying and selling a house, a key factor preventing these people from moving is a lack of availability of the type of housing they want to buy. Of the regions, London has the most residents considering a house move at 62%, followed by the South East at 57% and the North West at 51%. People living in the North East have been waiting, thinking about, or wanting to move the longest, with an average waiting period of 4.3 years, closely followed by those living in the North West it is 4.2 years and in the South West it is four years. Londoners top the list of those who say they are likely to get moving in the next 12 months at 44%, followed by people living in Yorkshire and The Humber at 42% and Scotland at 40%. ‘Low interest rates and improved confidence in the economy are creating potentially ideal conditions for the housing market,’ said Ben Wilson from Gocompare. ‘However, our survey suggests the high costs associated with buying and moving home, together with the requirement to put down… Continue reading
Scottish prime property market sees strongest year start since 2008
The prime residential market at £400,000 and above across Scotland experienced a strong performance last year, with a 22% annual increase in activity. In this sector there were 2,536 transactions during 2013, according to the latest analysis report from Savills which shows that the market was robust from spring 2013 onwards with deals being done throughout the winter period. A further 188 prime transactions were registered in January 2014 across Scotland, making it the busiest start to the year since 2008. Savills says that the prime market is being boosted by the hubs of Edinburgh, the Aberdeen area and Greater Glasgow, where prime activity increased annually by around 25% in each location. The prime market in Edinburgh was heavily supported by the hotspots of Grange, Morningside and Merchiston. Prime transactions in this combined area increased by 29% last year. The West End of Edinburgh and the northern suburb of Trinity also enjoyed a better market in 2013, following slightly lower activity in the previous two years. Similarly, the prime southern Glasgow suburbs of Pollokshields, Newlands, Giffnock and Newton Mearns experienced a strong market last year with a 31% increase in activity. These areas continue to be supported by top quality education facilities and excellent transport links. ‘We have noticed a change in the buyer age group over the course of the last year. In previous years there was an over reliance on those aged 50 and above driving the market. However, the prime market in the city hotspots of Edinburgh and Glasgow is increasingly being driven by younger professionals aged from 30 to 39, comprising around 40% of Savills sales last year,’ said Faisal Choudhry of Savill’s research team in Glasgow. ‘This target market had been somewhat subdued following the housing market downturn, mainly due to affordability issues. However, there was an ever present pent up demand among this age category aspiring to upsize. This age group is now more active and is enabling the whole of the market to move again following low levels of sales during 2011 and 2012,’ he pointed out. ‘The market strength in the core locations of Edinburgh, Aberdeen and Glasgow has spilled out to some of Scotland’s provincial locations, such as Tayside, where prime transactions increased last year by 19%. The prime markets in Ayrshire and the Borders also improved The analysis report explains that prime values across Scotland have fallen over the last few years due to the high levels of stock available on the market. However, the significant increase in prime sales has created a net reduction in stock levels. ‘Supply in some hotspots in Edinburgh and Glasgow has been decreasing, resulting in a slight rise in values, particularly towards the end of last year. The rebalancing of supply and demand has started in the country locations of Scotland with values beginning to stabilise during the last quarter of 2013. We expect a gentle rise in Scottish prime values during 2014 when supply and demand eventually rebalance,’ added Choudhry. Continue reading
