Tag Archives: real-estate
US existing home sales fell in April, latest NAR data shows
Despite properties in the United States typically selling faster than at any time since July 2013, existing home sales slowed in April, the latest data shows. But sales remained above an annual sales pace of five million for the second straight month, according to the report from the National Association of Realtors. The data report also shows that median existing home prices for all housing types in April was $219,400, which is 8.9% above April 2014, the 38th consecutive month of year on year price gains and is the largest since January 2014 when it was 10.1%. All major regions except for the Midwest experienced sales declines in April with completed transactions that include single family homes, town homes, condominiums and co–ops, falling 3.3% to a seasonally adjusted annual rate of 5.04 million in April from an upwardly revised 5.21 million in March Despite the monthly decline, sales have increased year on year for seven consecutive months and are still 6.1% above a year ago and NAR chief economist Lawrence Yun said that sales April's setback was the result of lagging supply relative to demand and the upward pressure it's putting on prices. ‘However, the overall data and feedback we're hearing from realtors continues to point to elevated levels of buying interest compared to a year ago. With low interest rates and job growth, more buyers will be encouraged to enter the market unless prices accelerate even higher in relation to incomes,’ he added. A regional breakdown of the figures shows that in April existing home sales in the Northeast declined 3.1% but are 1.6%. The median price in the Northeast was $253,200, which is 3.6% higher than April 2014. In the Midwest, existing home sales increased 1.7% and are 13% above April 2014. The median price in the Midwest was $173,700, up 11.4% from a year ago. Existing home sales in the South declined 6.8% but are still 3.6% above April 2014. The median price in the South was $189,400, up 8.5% from a year ago. In the West existing home sales decreased 1.7% but are still 6.4% above a year ago. The median price in the West was $318,700, which is 10% above April 2014. Total housing inventory at the end of April increased 10% to 2.21 million existing homes available for sale, but is still 0.9% below a year ago while unsold inventory is at a 5.3 month supply at the current sales pace, up from 4.6 months in March. With demand far exceeding supply, properties sold in April faster, at 39 days, than at any time since July 2013 when it was 42 days and the second shortest time since it was 37 days in June 2013. Short sales were on the market the longest at a median of 180 days in April, while foreclosures sold in 50 days and non–distressed homes took 38 days. Some 46% of homes sold in April were on the market for less than a month. ‘Housing inventory declined… Continue reading
UK house price expectations remains positive, latest index suggests
House price expectations in the UK remain positive, but signs of a post-election bounce are largely confined to London, according to the latest property sentiment index. Some 20.2% of the 1,500 households surveyed across the UK for the Knight Frank and Markit Economics house price sentiment index said that the value of their home had risen over the last month, while 4.1% reported a fall. This gave the HPSI a reading of 58, the twenty-sixth consecutive month that the reading has been above 50. But it was a slight decrease on last month’s reading of 58.2, indicating that households may have factored in the uncertainty caused by the general election to perceived price growth. ‘There is little evidence yet of an election bounce in house price expectations, reflecting current market conditions. Activity is certainly picking up following the election of a majority government, and the certainty this has provided in the housing market,’ said Grainne Gilmore, head of UK residential research at Knight Frank. Demand is rising, but an increasing number of vendors are putting their homes on the market, and this is set to create more balance in terms of pricing. Londoners expectations for future price rises reached their highest level since November last year, perhaps reflecting the increased certainty in the outlook for property taxes in the capital,’ she added. The future HPSI, which measures what households think will happen to the value of their property over the next year, fell in May to 70, slightly down from 70.2 in April. In spite of the monthly decline, the proportion of households expecting prices to fall over the next 12 months at 5.2% was the lowest ever recorded since the survey began in 2009. Meanwhile, 45.1% anticipate a rise in the value of their property and 49.7% forecast no change over the year ahead. Households in the East of England at 77.8 were most confident about price rises, followed by those in London at 77.7 and the South East at 73.5. The data also shows that some 6.4% of UK households said they planned to buy a property in the next 12 months, down from 6.5% a year previously. On a regional basis, nearly one in 10 households in the North East is planning a purchase in the next 12 months, followed by those living in London where 8.4% of households said they would be buying a property in 2015. ‘May’s survey highlights positive house price expectations across the UK, although households are still much less bullish than was seen at the post-recession peak exactly one year ago,’ said Tim Moore, senior economist at Markit. ‘Tighter lending criteria and stretched affordability continue to restrain house price sentiment, while improving labour market conditions and continued low mortgage rates remain two key drivers of positive property price trends,’ he explained. ‘The most likely area of the property market to experience an appreciable post-election bounce is the house building sector, as decision making should reaccelerate after several months… Continue reading
Spanish property prices up 2.65% in first quarter of 2015
There is more good news for the Spanish property market with the latest data from the Property Registrar’s Association showing that prices increased by 2.65% in the first quarter of 2015. The PRA data also shows that residential home sales increased 9.05% to 90,534 transactions compared to the same period in 2014. The rise in sales was largely due to robust growth in the resale market, with 67,864 transactions. Quarter on quarter the price for resale sale properties increased by 1.88% but since the peak of the market property prices are still down 31%, according to the registrars’ data. ‘The quarterly figures are the highest in the last eight quarters, showing a clear change of tendency in the market that began in previous quarters,’ the PRA report said. It also pointed out that it is the second highest quarter for sales in the three years and the third highest in the last four years. It is also proving to be a popular time for buying in Spain and the weak euro is encouraging British buyers back into the market. According to estate agency HomeEspana there has been a rise in interest from British people looking to retire to the Costa Blanca. The favourable exchange rate means that in middle of May 2015 a €100,000 property in the Costa Blanca costs a UK buyer approximately £10,000 less than it did the same time in 2014. For expats receiving an income or pension from the UK, a stronger Pound increases their spending power in euros. ‘Since the start of the year, we've seen a definite uplift in British buyers, in particular those moving out here, compared to 2014, and many decide to buy during their first visit here,’ said Kieran Byrne, managing director of HomeEspaña. ‘The exchange rate is helping, but there is also a feeling that house prices have bottomed out, as revealed by recent statistics from both TINSA and Spain's Registrars that show prices have risen in coastal areas and larger cities since the start of the year,’ he explained. One couple who found their retirement home with the help of HomeEspaña during their first trip to the Costa Blanca are Stuart and Jennifer Flairclough from Kent who completed on a three bedroom townhouse at the end of March 2015. The couple plan to make the €143,315 property which overlooks the fairways at Villamartin Golf and also has views of the Mediterranean. ‘It will be our permanent home and because of its size, we'll be able to accommodate our family and friends when they come over to visit,’ said Jennifer Fairclough. ‘We'd been researching the possibility of buying a retirement home in Spain for 12 or so months. Although we've travelled extensively in Spain, we only knew the Costa Blanca area from internet research,’ she explained. The Faircloughs didn't need much convincing the Costa Blanca was the place for them and they found and secured their townhouse during their first trip there. ‘We viewed the property… Continue reading
