Tag Archives: real-estate
Rental growth is weak outside of Australian capital cities, new data shows
Residential rental market conditions outside of capital cities in Australia remained weak over the September 2015 quarter with prices falling or remaining flat. Weekly rents fell the most in regional Western Australia with a decrease of 2.6, they were down 2.1% in the Northern Territory and down 1.7% in Victoria. The remaining capital cities all recorded flat condition over the three months ending September 2015. Regional unit markets also showed weak rental conditions, with regional Tasmania the only area recording an increase in apartment rents over the quarter with growth of 2.2%. Unit rents were down over the quarter in regional Western Australia by 2.9%, in New South Wales by 1.5% and the remaining capital cities all showed flat rental conditions. According to CoreLogic RP Data head of research Tim Lawless there has been a significant slowdown in the rate of rental growth over the past couple of years due to new housing supply increasing and investor purchasing at record highs. He expects this trend to continue over the coming year. Annually, rents rose across some of the regional rental markets, however, Lawless noted that the performance as a whole remains relatively weak. Tasmania recorded the strongest rental growth across the country with a 2% increase for houses and 4.5% for units. He pointed out that on the other hand, the most substantial fall in rental rates, relative to September last year, were across regional Northern Territory where house rents are down 6% year on year and units down 6.5%. ‘Those regions with strong ties to the mining and resources sector are pulling regional rental lower as demand for housing continues to moderate. On the other hand, regional lifestyle and coastal markets are bucking the softening trend to some extent with showing year on year rises,’ Lawless concluded. Continue reading
Less than one in five house sales fell through in UK in third quarter
Less than one in five house sales fell through between July and September in the UK, taking the house sale fall through rate to its lowest level since late 2012, new research shows. The figures from home buyer Quick Move Now indicate a house sale fall through rate of 19.62% in the third quarter of the year, down from 36.34% in the second quarter of 2015. The six month average fall through, which offers a greater overview of how the property market is performing generally, shows that at the end of the second quarter it was 28.44% but this fell to 27.99% in the third quarter. ‘As the property market becomes more competitive, buyers are coming to the market better prepared in order to make themselves more attractive to vendors when competing for property,’ said Danny Luke, business manager at Quick Move Now. ‘Often, buyers will already have sought financial advice, have mortgage offers in place, and taken time to really consider affordability so they know what they can afford and they know what they're looking for, so when they find a good property they want to snap it up as quickly as possible and not risk losing out to another buyer,’ he added. He also believes that due to continued market buoyancy and predicted interest rate rises, buyers are keen to secure properties quickly before they're priced out of the market. Meanwhile, separate research shows that demand for London property at below £2 million is set to remain strong, with the city’s population forecast to grow by more than 100,000 every year for the next decade. As house prices grow across London, it will create new markets where properties cross the £1 million threshold, according to the latest London Residential Review from real estate firm Knight Frank. The analysis is based on postcode districts where at least 20% of sales have been above £1 million in at least one quarter since the start of 2014. The minimum threshold was five sales and no postcode district was allowed to have more than one quarter with 20% of sales above £1 million before 2014. The data shows that Hammersmith (W6) had five such quarters since 2014, making it the area that has undergone the biggest transformation in terms of £1 million plus sales. Other areas include Maida Vale (W9), Queen’s Park (NW6), East Finchley (N2) and Muswell Hill (N10). Further south, Battersea (SW11) and Vauxhall (SW8) have consolidated their positions as £1 million markets. Continue reading
Majority of Americans believe in home ownership and are positive about the market
The majority of people in the United States believe that buying a home is a good financial decision, that now is a good time to buy and that they could sell their home for at least its initial purchase price. The survey from the National Association of Realtors which measures consumers' attitudes and concerns about housing issues in the nation's 50 largest metropolitan statistical areas, found that more than eight in 10 Americans are positive about the housing market. Some 68% believe that now is a good time to buy a home, 71% that they could sell their house for what they paid for it, a jump of 16% compared to 2013, the data shows. When asked for reasons about why home ownership matters to them, respondents’ answers have not changed significantly from past years. Building equity, wanting a stable and safe environment, and having the freedom to choose their neighbourhood remain the top three reasons to own a home. ‘Home ownership is part of the American Dream, and this survey proves that dream is alive and thriving in our communities,’ said NAR president Chris Polychron. The research also found that the number of renters who are now thinking about purchasing a home has increased since the last survey in 2013, up from 36% to 39and 61% said that owning a home is a priority for their future. According to the survey 80% of respondents believe that pre-purchase counselling programmes and classes are very or somewhat important. Indeed, 45% of home owners who said they did not take a counselling programme reported they would have taken part in one had it been easily available to them. Attitudes about the housing market have improved in recent years and 49% of respondents indicated that they feel activity in the housing market has increased in the past year, compared to 44% in 2013 and 12% in 2011. The study shows that 89% expect home sales in their area to either increase or remain the same. Concern about foreclosures has also declined, with only 15% of respondents indicating that foreclosure is a major concern. In addition to improved attitudes about the housing market, survey participants also showed an improved outlook regarding the economy. Only 36% think that job layoffs and unemployment are a big problem, a substantial drop from 45% in 2013. Perceived obstacles to home ownership have remained mostly unchanged compared to recent years and 78% of respondents pointed to college debt and student loans as the main obstacle to making a home purchase affordable. On top of this 76% said they have a full time job but still did not make enough money to purchase a home while 74% believe they do not have enough money for a down payment and closing costs. As the market has improved, concern about the cost of housing has increased. Two thirds of survey participants said that home prices are more expensive than they were a year ago. There is… Continue reading
