Tag Archives: real-estate
Pending home sales fall across the United States, latest index shows
Pending home sales in the United States cooled in September for the second month in a row, taking them to their second lowest index reading in 2015, according to the latest index. All four major regions experienced a pullback in activity in September, the Pending Home Sales Index, a forward looking indicator based on contract signings, from the National Association of Realtors shows. The index declined 2.3% to 106.8 in September from a slightly downwardly revised 109.3 in August but is still 3% above September 2014 when it was 103.7. With last month's decline, the index is now at its second lowest level of the year but has still increased year on year for 13 straight months. Lawrence Yun, NAR chief economist, said that a combination of factors likely led to September's dip in contract signings. ‘There continues to be a dearth of available listings in the lower end of the market for first time buyers and realtors in many areas are reporting stronger competition than what's normal this time of year because of stubbornly low inventory conditions,’ he explained. ‘Additionally, the rockiness in the financial markets at the end of the summer and signs of a slowing US economy may be causing some prospective buyers to take a wait and see approach,’ he added. Despite contract activity softening from the more robust levels seen earlier this year, Yun believes the housing market will still likely be one of the brighter spots in the economy in coming months. ‘With interest rates hovering around 4%, rents rising at a near eight year high, and job growth holding strong, albeit at a more modest pace than earlier this year, the overall demand for buying should stay at a healthy level despite some weakness in the overall economy,’ he added. The PHSI in the Northeast fell 4% to 89.6 in September, but is still 3.9% above a year ago. In the Midwest the index declined 2.5% to 104.7 in September, but remains 4.3% above September 2014. Pending home sales in the South decreased 2.6% to an index of 118.3 in September and are now 0.1% below last September. The index in the West inched back 0.2% in September to 104.4, but is still 6.6% above a year ago. Continue reading
England and Wales property prices up again, with average in London reaching half a million
Property prices in England and Wales increased by 1% in September, taking the average house price to £186,553, according to the latest Land Registry data. Year on year prices have increased by 5.3% but in London it is much higher at 9.6% year on year and 1.8% month on month and the average price in the capital city is now a record £499,997. The North East saw the only annual price decrease of 0.3% and also saw the only monthly price decrease with a fall of 0.3% as well. But sales are down. From April 2014 to July 2014 there was an average of 78,330 sales per month but in the same months a year later, the figure was 71,766. The data also shows that the number of properties sold in England and Wales for over £1 million in July 2015 was down 9% year on year and in London it was down 16%. Jonathan Hopper, managing director of the buying agents Garrington Property Finders, said it was inevitable that the average property price in London would reach half a million pounds. ‘Prices in the capital have been marching relentlessly upward in all but the top tiers of the market, as strong demand collides with a sustained shortage of supply. But the average London property price won't stay at £500,000 for long. Bullish sentiment has driven annual price inflation in the capital close to double digits again, and the half million mark could soon be forgotten,’ he explained. He pointed out that the price gains are steadily rippling outwards from London, with both the South East and East of England posting annual rates of growth of over 8%, but England's North-South divide remains as strong as ever. ‘Even though the North West has reversed the sudden month on month drop in prices it saw in August, prices in the North East of England have slipped back into negative territory. By contrast much of the South and East looks like one giant hotspot, as the national picture returns firmly to type,’ he said, But he believes that rising prices should not be confused with sound health in the property market. ‘The shortage of supply is endemic in several areas, and the current rate of demand can never be completely met. Yet for all the competition among buyers, most remain astute in their offering behaviour and sellers shouldn't be tempted into thinking it's an exclusively sellers' market,’ he added. A sense of balance is appearing in the market, according to Nicholas Leeming, chairman of high end national estate agents Jackson-Stops & Staff. ‘London continues to drive forward but we’re now seeing emerging boroughs such as Newham and Hounslow enjoy strong growth, while traditional performers such as Hammersmith and Fulham begin to wane,’ he said. ‘There still remains a stand-off between buyers and sellers at the top end of the market, with neither party prepared to accept the higher cost of stamp duty. Outside of the capital, it… Continue reading
Rents in prime Home Counties market in UK down 0.8% in third quarter
Prime rents in the English Home Counties fell by an average of 0.8% in the third quarter of 2015 despite robust activity levels but are up 4.1% year on year, according to the latest data. The prime rental market in these counties around London, tends to be very seasonal and the three months leading up to September are often among the busiest of the year as tenants look to complete moves before the new US and UK school terms start in August or September respectively. This year was no exception, according to the index report from international real estate firm Knight Frank, with the number of tenancies agreed in the three months to September 54% higher than over the preceding three month period. But while activity levels have been robust, rising stock levels across the prime market, have meant that some landlords have been willing to reduce asking rents slightly in order to remain competitive, according to research executive Oliver Knight. ‘As ever, demand from individuals relocating for work continues to form a significant proportion of the market, especially in the prime commuter hotspots of Ascot, Cobham and Esher where corporate tenancies accounted for 42% of all deals agreed over the three month period,’ he said. ‘This corporate demand for rented accommodation has been particularly strong from individuals working in the technology sector. The share price of technology businesses has performed well this year, especially when compared to the banking and oil and gas industries,’ he added. He pointed out that the market continues to attract international tenants with some 38% of new renters across the prime Home Counties market coming from outside of the UK between July and September in Ascot, Cobham and Esher where corporate tenancies are more prevalent this rises to 51%. Individuals from North America were the most active movers during this time, with the start of the American school term in August likely to have been a factor. Continue reading
