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Scottish property prices bounce back after dip due to referendum vote
After a cooling in the market due to the referendum vote on independence, house prices in Scotland have now recovered, according to the latest index figures. Scottish property prices increased by 0.7% in October, taking the average house price to £164,798, just £717 below the pre-recession peak in May 2008. The LSL Property Services/Acadata house price index also shows that on an annual basis prices are up 5.7% and sales of million pound properties in particular have increased since the referendum. The biggest annual rise was in East Renfrewshire with price growth of 13.4%. But growth is not universal with annual price growth down 9.4% in the Scottish Borders and down 6.7% in South Ayrshire. On a month on month basis prices increased by 5.8% in East Dunbartonshire and by 3.4% in Fife but fell by 1.7% in East Lothian and by 1.8% in South Ayrshire. Even in Aberdeen, which has seen some of the highest price growth in Scotland, prices dipped by 0.5% in October. ‘After a run of monthly house price stumbles on the way to the landmark referendum, the Scottish property market has recuperated. Growth regained ground during October, and property values bounced back,’ said Christine Campbell, regional managing director of Your Move. She pointed out that this has returned overall annual growth in Scottish house prices to 5.7%, typically amounting to £8,850, over the past year, and property values in Scotland are making faster progress than across the North of England and Wales. ‘Since the independence question evaporated, a new ray of confidence and certainty is radiating through the market, as normality is resumed. The feel good factor is especially pronounced at the highest tiers of the property market, where political uncertainty froze activity most acutely,’ she explained. Indeed, sales of properties worth £1 million or above have more than doubled from September to October as high end homes began to change hands again. In fact, October 2014 saw the biggest number of million pound properties sold in a single month since September 2008. Campbell also pointed out that only three quarters of the country has seen price growth in the past 12 months and in the remaining areas, property values are below 2013 levels. ‘In these places, activity is vital to keep price growth sailing along, but house sales have slipped back 1% since September,’ she said. While overall, Scottish property sales in 2014 up to October are 14% higher than the same 10 months in 2013, this still only represents 65% of the average volume reached in the pre-recession period of 2004 to 2007. ‘The Chancellor’s revamp of stamp duty should go some way to shore up demand in the short-term, and set off more movement at the lower end of the property chain. But first time buyers have been the guiding light of the Scottish housing recovery, accounting for 46% of current sales in the property market,’ said Campbell. ‘For the bulk of… Continue reading
Return of foreign buyers to Italian property market set to continue in 2015
The last year has been a good one for the Italian real estate market and going into 2015 there are still good buys to be found in many areas, it is claimed. ‘If the first quarter of 2015 is as busy as the first quarter of 2014 then this will be a very positive sign indeed and I can see no reason why not. The Euro is weaker against the Pound which is a great advantage and of course encourages clients to purchase more readily,’ said Linda Travella, who has been working in the country’s real estate industry for over 20 years. She has picked Puglia, Lake Como and Tuscany as the most popular areas for overseas buyers in 2014 and is certain this will continue into 2015 and pricing at the right level will still be the key to getting a sale. ‘The Tuscan market was hit the worst in the 2008 crash and that means that the possibility of finding a good buy in Tuscany is still excellent. If clients put their property on the market at an inflated value it will not sell as there are too many sellers prepared to negotiate to obtain a sale from a buyer who has the cash,’ she explained. She points out that it is possible, for example, to buy a fully renovated two bedroom apartment close to Volterra furnished or unfurnished with shared pool, starting from as little as €260,000. She predicts that British buyers will return to Lake Como in 2015 while Russian buyers have decreased. But Swiss and German buyers are still strong. Overall she expects the €500,000 plus market to be more buoyant in 2015. Sales at the lower end of the market are expected to be strong. ‘The market at €150,000 and under returned in 2014 and I see this trend continuing. Why leave your money in the bank or building society and receive hardly any interest, shares also lost value between April and October 2014 so an investment in property seems a much better option,’ said Travella. ‘I think the first quarter of 2015 will show a great deal of interest with clients viewing in February, March and April. We are seeing more interest from the UK market than in the past five years with the Europeans still also very interested buyers,’ she explained. ‘The US market seems to be also showing some interest compared to the past years with some clients already talking of viewing in the first and second quarters,’ she added. Her firm Casa Travella has also seen a huge surge of interest in 2014 in property in Puglia but many buyers were ‘just looking’. However, she expects these buyers returning to purchase in 2015. She also believes that The Dolomites could be an up and coming area in 2015 as property is hard to find but a great investment and not just for skiing. Her other top tip is Southern Le Marche where property by the… Continue reading
Residential property cash sales in the US falling, latest data shows
Cash sales in the United States made up 34.8% of total home transactions in September 2014, down from 37.2% a year ago, according to the latest data to be published. The year on year share has fallen each month since January 2013, making September the 21st consecutive month of declines, the data from real estate firm Core Logic. Month on month, the cash sales share ticked up by 1%, however, the firm points out that cash sales share comparisons should be made on a year on year basis due to the seasonal nature of the housing market. Prior to the housing crisis, the cash sales share of total home sales averaged approximately 25% with a peak in January 2011 when cash transactions made up 46.4% of total home sales. Real estate owned (REO) sales had the largest cash sales share in September 2014 at 58.1%, followed by re-sales at 34.4%, short sales at 32.4% and newly constructed homes at 16.8%. While the percentage of REO sales that were cash transactions remained high, REO transactions made up only 7.8% of total sales in September and, therefore, did not have a large influence on the overall cash sales share. In January 2011, when the cash sales share was at its peak, REO sales made up 23.9% of total sales. A breakdown of the figures shows that Delaware had the largest share of any state at 57.4%, followed by Florida at 50.8%, Alabama at 49.6%, New York at 44.4% and Idaho at 43.3%. Of the nation's largest 100 Core Based Statistical Areas (CBSAs) measured by population, Miami-Miami Beach-Kendall, Florida, had the highest share of cash sales at 56.2%, followed closely by West Palm Beach-Boca Raton-Delray Beach, also in Florida at 55.9%. Then came Fort Lauderdale-Pompano Beach-Deerfield Beach, in Florida at 54.8%, Cape Coral-Fort Myers, also in Florida, at 54.7% and Detroit-Dearborn-Livonia, in Michigan at 53.1%. The data also shows that Washington-Arlington-Alexandria, D.C. had the lowest cash sales share at 16.2%. Continue reading
