Tag Archives: real-estate
Spanish property market still on a roller coaster
The roller coaster nature of the Spanish property market recovery is laid bare with the latest data on prices showing that the slowdown has not yet gone, nor has the difference between official figures and those from real estate firms. The latest figures from valuations company Tinsa show that at a national level property prices are still falling although there are regions where they are rising while the latest data from the Housing Department show prices falling slightly. The Tinsa data for May, based on the company’s own valuations, shows that average national house prices were down 3.6% year on year but this global figure hides considerable regional variations. For example the biggest price falls are in provincial capitals and large cities with a decline of 4.9%, while house prices on the Mediterranean coast were down 2.3% and in the Balearics and Canaries there was a fall of 2.1%. However, year on year house prices on the coast are up 1.4% compared to May 2014 but are still down 48.8% compared to the peak of the market and according to Tinsa the national average peak to present fall is 42.1%. According to the government figures the average price for Spanish property fell a 0.11% in the first three months of this year, the smallest quarterly decline since the economic crisis began and down from a fall of 0.36% in the last quarter of 2014. This takes the average property price to €1,458 per square meter and this is down 36.3%, adjusting for inflation, since the peak of the market in 2008 when it was €2,100 per square metre. A regional breakdown of the figures shows that seven autonomous regions registered year on year price growth led by the Canaries up by 3.56%, Aragon up 1.9%, Madrid up 1.67%, the Valencian Community up 0.69%, Extremadura up 0.57%, the Balearics up 0.1% and Andalusia up 0.05%. The rest of Spain is still seeing annual price decreases. In Asturias prices have fallen by 6.53 year on year, by 3.72% in Castilla-León, by 3.15% in Navarra, by 2.29% in Galicia, and by 1.47% in the Basque Country. According to the Housing Price Index (HPI) published by the National Statistics Institute, the price of homes rose by 1.5% in the first quarter of the year, compared to the same period of 2014, which is below the 1.8% price increase recorded at the end of 2014. But the index has recorded four consecutive quarters of year on year increases following six years of declines. The index also shows that prices for new homes are rising faster than others. Second hand homes say a rise of 1.1% in the first quarter of the year while new home prices rose by 4%. Continue reading
Average prices in England and Wales up 0.4% in May to new high
Average house prices in England and Wales increased by 0.4% in May to reach a new high of £277,178, the fourth price record set this year, the latest index data shows. However monthly property price growth is still only a third what it was a year ago, according to the LSL house price index. Year on year price were up 4.5% and excluding London the annual growth was 4.4% as London was knocked into fourth place with price rises accelerating in North of England. Only a few months ago price rises in London were skewing the annual figure, but not anymore. Indeed, the data shows that home values in Kensington and Chelsea are now 16% below their peak in the autumn 2014. The LSL index data also shows that home sales were down 14% year on year in May as a lack of supply suppresses housing market activity. Adrian Gill, director of Reeds Rains and Your Move estate agents, pointed out that the 0.4% boost in compares to 1.2% at the same point 12 months ago, but he believes that the recovery is still underway. He also pointed out that there are now only four regions across the country where house prices are still dallying below 2007/2008 benchmarks and it is those areas which have most catching up to do and where price increases have typically been smaller, where growth is now accelerating. For instance, while average property values in the North are still 4% lower than during the pre-crisis years, this region has experienced the fastest increase in the rate of annual growth recently, up from 2.3% in March to 3.6% in April. Price rises in the North West, South West, and East Midlands are also on the up, at the same time that growth in London is waning. ‘This has knocked the capital back into fourth position in the rankings of regional house price growth over the past 12 with the annual rise in London estimated to now be less than 12% of what it was in of July last year and 2.4% in May 2015, down from 20.7% in the summer of 2014,’ explained Gill. He also explained that on a monthly basis, London house prices have dropped for the third successive month since the start of the year. It is the higher priced boroughs which have seen the biggest price falls, and Gill said this is a side effect of costlier stamp duty on top-end properties. For example, home values in Kensington and Chelsea, the most expensive London borough, have dropped 6% in the past year, and are now 16% below their peak in September 2014. This falloff at the top tiers of the market has cooled activity levels too. Home sales in London have dropped 16% year on year in the three months to April 2015, the most significant drop-off of all regions. Continue reading
Fewer homes coming onto the market in UK, despite positive election result
Hopes for a post-election supply bounce in the UK residential market fail to materialise and selling instructions fell for the fourth month in a row, according to the latest monthly report. Indeed, the average stock of houses per surveyor has fallen by around 12% since the start of 2015, the data from the May report by the Royal Institution of Chartered Surveyors shows. But prices are not suffering with 38% more surveyors expecting higher house prices over three next three months and new buyer enquiries are rising at the fastest rate in over a year. The RICS report shows that house prices rose again in May, and at a quicker pace than in April, as the stock of homes per UK surveyor fell to a record low since the data series began in January 1978. While 34% more surveyors saw prices rise in May, the same month in which the Nationwide Building Society estimated that the average price of a home in the UK has now climbed to £195,000, supply to the market declined with 19% more surveyors reporting a drop in new instructions. Despite the rise in new buyer enquiries, which increased from a net balance of 4% in April to 18% in May, many respondents to the survey expressed some surprise at the lack of post-election bounce in fresh supply following the unexpectedly decisive outcome to the poll. The North West and London saw the sharpest drop in instructions compared with April. More ominously, UK wide listings have now failed to see any meaningful growth since the middle of 2013. Additionally, although respondents' reported a slight improvement in credit conditions with higher perceived loan to value ratios on mortgages to first time buyers and existing home owners, the average number of newly agreed sales per surveyor rose only very marginally to 19, down from 23 in May 2014 and up from 18.9 in April 2015. At a regional level, unbalanced price growth continues to be particularly marked across the market. Surveyors reported the highest price growth over the last three months in the North West, Northern Ireland, East Anglia and the South West. But London is now seeing a slight turnaround, following seven consecutive months in which the net balance for prices was in negative territory, it has now been positive for two months in succession. In the lettings market, tenant demand continued to increase in May on a non-seasonally adjusted basis extending an uninterrupted run of demand growth into a fifth straight month and respondents' anticipate rents will rise across all parts of the UK over the next three months, with expectations most elevated in the East Midlands and the South West. ‘There had been some hope that the removal of political uncertainty would encourage more properties onto the market but the initial indications are that this is not proving to be the case. As a result, it is hardly surprising that prices across much of the… Continue reading
