Tag Archives: real-estate
Americans more confident about the nation’s housing market, new research shows
Overall Americans are more confident about the housing market than at the start of the year, according to the latest Zillow Housing Confidence Index. The index increased to 64.2 over the summer, up from 63.7 in January, and housing confidence increased among residents in 11 of the 20 major metro areas surveyed. The ZHCI, sponsored by Zillow and developed by Pulsenomics, is measured on a 0 to 100 scale, with readings above 50 indicating positive sentiment. The headline index is comprised of sub-indices which measure prevailing market trends and buying/selling conditions, expected changes in home values, home affordability, the value of home ownership and, household home buying plans and attitudes toward the social value of home ownership. But the analysis also reveals that consumers’ expectation is for more modest home value growth going forward are this is in line with Zillow's predictions for slower home value growth over the next year. The Zillow Home Value Forecast, which predicts home value growth of 3.1% through next August, is down from 6.6% over the past year. The report also shows that overall, housing confidence is higher among home owners than renters, likely owing to historically high rents and favourable home buying conditions. An analysis of data within the 10,000 completed survey questionnaires used to calculate the ZHCI reveals that younger renters are upbeat about their future home buying prospects. Among renters aged 18 to 34 some 82% said they were confident or somewhat confident that they will be able to afford to own a home someday, compared to 64% of those aged 35 to 49 and 48% of those aged 50 to 64. Then younger age group were also far more optimistic about future home value appreciation with 33% saying that they expected home values to rise more than 6% per year over the next decade, compared to 21% of the middle age group and 15% of the older age group. ‘It's heartening to see younger renters express so much confidence in their ability to buy a home in coming years, because today's renters by necessity are tomorrow's buyers,’ said Zillow chief economist Stan Humphries. ‘Cynics might argue that these results represent no more than youthful exuberance, or perhaps some naiveté, but that's missing the point. We need this generation to be confident and wanting to buy, regardless of the difficulties they face,’ he explained. ‘And there are difficulties, including saving for down payments in the face of high rents and high student debt burdens, uncertain job prospects among younger workers and limited entry-level home inventory. But optimism is a necessary first step, and indicates a desire among a very creative generation to find creative solutions that will enable them to achieve home ownership,’ he added. The report suggests that in some respects, younger potential buyer’ views toward housing may be more conventional than older generations. Some 65% said they agreed with the statement that owning a home is necessary to living a good life and is central to the American dream, compared… Continue reading
Agents report rush of business in Scotland after referendum vote
Scotland has seen renewed activity in the residential real estate market in the weeks after the historic referendum vote. Agents across the country have reported an upsurge in sales, many of which they believe had been delayed due to the upcoming vote. Indeed some buyers had asked for a clause that allowed them to get out if the vote had been a Yes. Momentum has accelerated significantly according to estate agency Strutt & Parker which reports that early indications suggest that the property markets will make up for lost time after an understandably quiet few weeks in the build-up to the vote. It has three offers made on the first working day following the referendum and across Scotland Strutt & Parker has launched 14 properties since then and is preparing another 15 for sale. The agency has organised more than 100 fresh viewings in the last week, received 11 offers and held several successful closing dates for best and final offers. This is set against very subdued activity in the month leading up to the referendum. ‘There has been a demonstrable rise in activity levels. After a lull prior to the referendum, the telephones are ringing again with inquiries from both potential vendors and purchasers,’ said Andrew Rettie, partner in charge of the firm’s estate agency in Scotland. He pointed out that the autumn market is traditionally strong but it has this year been delayed by at least a month. ‘However, the referendum is now behind us and the uncertainty surrounding it is consigned to the past. We know that Westminster is committing to plans for Devo Max and we hope these will be clarified as soon as possible,’ said Rettie. ‘Most of the buyers and sellers I have spoken to are relieved that the referendum is out of the way and that they can get on with their business life, and make the decisions they may have delayed in recent months. It is early days but evidence from the past week suggests the market will kick off from this point and that we will see a renewed vigour in the autumn,’ he added. Strutt & Parker was instructed to sell a sporting and agricultural estate early on the Friday morning after the vote which is now being prepared for the market. It also held a successful closing date for a farming and residential estate in Argyll on the Tuesday after and launched a Borders estate a week after. Other estate agents report selling 50 properties in the week after the vote. Continue reading
Latest data from UK estate agents shows younger buyers priced out of market
People aged in their thirties are dominating the first time buyer market in the UK with those who are younger prices out of the market, according to a new report from the National Association of Real Estate Agents (NAEA). Overall the number of first time buyers is up from previous month sales, from 20% in July 2014 to 28% in August, the highest percentage of FTBs recorded since April 2014 but the number of buyers aged 18 to 30 remains at an all-time low at just 3% of recorded sales for August NAEA agents agree prospective interest rate rises will affect demand in the property market which will not help younger buyers who are already out of the housing market. While the number of sales made to those aged between 18 to 30 remained low, sales to those aged 31 to 40 were the highest recorded for the month, with almost half, 45%, of homes sold being bought by those in this age bracket. The figures suggest that the majority of first time buyers fall into the latter group, as high house prices price the younger generation out of the market. The report also found that most buyers, some 90%, bought as couples, with just 7% buying alone. Although the overall rise in the first time market is a positive, nearly 90% of NAEA agents believe the foreseen rise in interest rates will affect the demand for property in some way, with another 39% of members already claiming to see signs of demand dropping off. ‘Reports from our members suggest that the high house prices of the current housing market are still proving a barrier for the younger generation. It is evident that first time buyers are indeed getting older,’ said Mark Hayward, NAEA managing director. ‘With the majority of home buyers this month aged 31 to 40, this suggests some correlation between the increase in the first time buyer market and this age group. It is concerning at the lack of young people unable to buy their first home before the age of thirty, having to rent or stay at home for longer in order to save,’ he pointed out. ‘While the increase in first time buyers is a positive, what could be a worry for home buyers is the prospective interest rate rise that’s on the horizon. If interest rates do rise, the majority of NAEA members agreed that this will affect the demand for property, as prospective buyers are discouraged by the cost of borrowing,’ he explained. ‘In addition first time buyers need to be careful they can afford their mortgage, as interest rates could significantly push-up repayments, putting pressure on household budgets,’ he added. The report also shows that in terms of housing stock for August, this month saw a decrease in the average number of properties available per NAEA member branch. Available properties decreased to an average of 49 per NAEA member branch, compared to 51 in July 2014. At the same time, the average… Continue reading
