Tag Archives: real-estate
Sales and prices in Canada continue upward but with considerable local variations
Home sales in Canada increased by almost 2% in August compared with the previous month and prices were up 5.3% year on year, according to the latest index from the Canadian Real Estate Association (CREA). Actual, not seasonally adjusted, activity stood 2.1% above August 2013 levels and the number of newly listed homes fell 1.2% from July to August. The 1.8% month on month sales rise marked the seventh consecutive monthly increase, and the highest level for sales since January 2010. Although activity rose in fewer than half of all local housing markets in August, the national tally was fuelled by monthly sales increases in Greater Vancouver, Calgary and Greater Toronto. ‘Sales picked up in some of Canada’s most active and expensive real estate markets which fuelled another national increase. Even so, the national increase in sales does not reflect local trends in many markets across Canada,’ said CREA president Beth Crosbie. CREA chief economist pointed out that sales activity in recent months has remained stronger than was anticipated earlier this year. ‘Listings and sales this spring were deferred due to unseasonably harsh weather, which subsequently supported activity once the delayed spring home buying season got into gear. This trend was reinforced by a decline in mortgage interest rates,’ he said. The boost from deferred sales is still expected to prove transitory. While national activity has yet to cool, sales were down from the previous month in the majority of Canada’s local markets, which may be early evidence that the transitory boost is fading. That said, low interest rates will continue to support housing affordability and sales activity,’ he added. The index also shows that year to date sales activity is up 4.3% compared to the first eight months of 2013 and remains in line with the 10 year average for the period. The actual, not seasonally adjusted, national average price for homes sold in August 2014 was $398,618, up 5.3% from the same month last year. But CREA points out that the national average price continues to be skewed upward by sales activity in Greater Vancouver and Greater Toronto, which are among Canada’s largest and most expensive housing markets. Excluding these two markets from the calculation, the average price is a relatively more modest $324,738 and the year on year increase shrinks to 3.9%. Year on year price growth in August picked up slightly for townhouse and terraced homes and apartments but slowed for one storey single family homes and was unchanged for two storey single family homes. Two storey single family homes continue to post the biggest year on year price gains with growth of 6.32%, followed closely by town house and terraces up 5.59% and one storey single family homes up 5.23%. Price growth for apartments remains comparatively more modest at 3.38%. Year on year price growth varied among local housing markets tracked by the index. As in recent months, the biggest gains were in Calgary with price rises of 9.83% followed by Greater Toronto at 7.82%… Continue reading
Difference between asking and selling prices in Scotland narrows
Average asking prices across Scotland increased by £2,000 and the average selling price increased by over £8,500 to £162,122 in the second quarter of the year, narrowing the gap between the two to less than 1%. Flats continue to sell above their asking price typically selling for around £18,000 more, up from £11,000 last quarter, according to the latest index from s1homes. This means that the average selling price for flats increased by over £8,500 to £126,844 while the average asking price rose by around £1,500 to £108,472. Both the average asking and average selling price of terraced houses increased this quarter, up by £4,000 and £9,000 respectively. Terraced houses on average sell for £11,000 more than their asking price up from £7,000 in the previous quarter. This quarter the average selling price for a terraced property has increased and is once again higher than the average asking price. It increased by over £8,000 to £150,458. There is less than £1,000 of a difference between the average asking price and average selling price this quarter. Detached houses are the only property type where a Reality Gap exists and this has remained at 13% for a second consecutive quarter as both the average asking and selling prices increased. Typically detached houses sell for £37,000 less than their asking price. A breakdown of the figures shows that in Argyll and Bute the Reality Gap has narrowed significantly from £47,000 to £28,000 driven by the increase in the average selling price. The average selling price increased by £21,000 to £156,495. In Ayrshire the average selling price has increased by £10,000, narrowing the Reality Gap to £21,000, down from £31,000 last quarter. For a second consecutive quarter the average asking price remains relatively static at £146,336. The Reality Gap has narrowed in East Lothian where on average properties are selling for £27,000 below their asking price compared with almost £36,000 in the previous quarter. The average selling price has increased by £15,000 to £209,349. In East Renfrewshire, the Reality Gap has narrowed to 6.5% with properties on average selling for £16,000 less than their asking price. Both the average asking price and average selling price have increased, rising by £9,000 and £16,500 respectively. In Edinburgh, properties are once again typically selling for more than their asking price. This quarter both the average asking price and average selling price increased, the average asking price by £6,000 and the average selling price by £12,500. In Falkirk, the Reality Gap has narrowed from £24,000 to £15,000 despite the average asking price increasing by £4,500 as the average selling price increased by over £13,500. The Reality Gap in Fife has widened slightly this quarter with properties typically selling for around £11,000 less than their asking price. The average asking price and average selling price this quarter both increased by around £2,000. In Glasgow/Dunbartonshire both the average asking price and average selling price have increased by £3,500 and £3,000 respectively. The Reality Gap remained at 5% with properties typically selling for almost… Continue reading
Asking price growth in UK slowing, latest index shows
UK asking prices increased by 0.2% in August, the eighth month in a row that they have moved upwards, the latest index shows. But asking price growth is slowing, especially in London and overall the average annual appreciation fell 0.3% to 9%, according to the data from Home.co.uk. But these headline figures mask some variation. London asking prices dipped under the weight of increased supply, ending a 20 month rally and average prices were unchanged in Scotland and the North West. Prices rose in all other English regions and Wales. Even within London there is considerable variation and overall the supply of property in the city is up 33% compared with August last year. Stratford tops the London property hotspot league, table with home prices leaping 45% over the last 12 months. Overall, the UK property market is cooling. The average asking price for a UK home has risen only 0.2% over the last month and 0.8% over the last three months. Correspondingly, London prices slipped 0.1% over the last month, yet have risen 9.8% over the last six months. The firm says that tightening mortgage credit in the wake of mortgage regulation, coupled with increased supply, has served to quench further growth in London home prices for the time being. ‘Home price inflation still persists outside of London but at an attenuated pace. Moreover, the surge in supply that has halted London price rises has not yet spread to adjacent regions,’ said Doug Shephard, director of Home.co.uk. The Asking Price Index also shows that certain regional property markets continue to be strong performers. East Anglia, the East Midlands, the South East and South West all show six month price rises of over 4%. Others, however, are showing much weaker price growth. Home prices in the North East are still falling behind inflation, rising only 1.2% over the last six months and by only 0.6% over the last year. Shephard also pointed out that across the UK, supply remains historically tight, showing a rise of only 3% on the already record low levels observed 12 months ago. Supply of properties entering the market fell the most in East Anglia, down 6% over the last 12 months. ‘Looking back further to 2007, we can see that it is actually the Greater London market that has contracted the most, by 65% over the last seven years, despite a recent surge in property entering the market,’ he explained. Of the regions, the East Anglia and South East property markets have contracted the most, down 63% and 62% respectively. Overall, the mainland UK property marketplace offers 55% less choice to buyers today than it did in 2007. Marketing times are beginning to rise across all regions and London, as is seasonally expected. However, further analysis across the regions reveals real improvement in every region compared to this month last year, although the relative pace of the regions remains highly diverse. Continue reading
