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More first time buyers entering the UK housing market
First time buyers in the UK have increased their dominance of the housing market but other buyers have fallen in number, according to estate agents. The latest Housing Market Report from the National Association of Estate Agents (NAEA) also reveals that the supply of homes has reached a near decade low. The average number of properties available per member branch in February fell from 45 in January to 43 in February, the fifth consecutive drop experienced in supply of properties coming on to the market. The NAEA says that the supply of properties are now at similar levels seen in May 2004 but despite the lack of properties in the market, the average number of sales agreed per branch continued to improve, up from an average of eight sales per branch in January to nine in February. The number of first time buyers entering the market has also continued to improve with 29% of all homes sold by NAEA member agents being sold to them in February. However, these figures were recorded alongside a decrease in the in the total number of house hunters, with the average number registering with member agents down 6.2%. This resulted in the average number of buyers per property remaining the same at eight, as both supply and house hunter numbers contract. NAEA agents also reported that the percentage of properties sold to people purchasing a house using the Help to Buy equity loan scheme remained the same month on month at an average 4%. The most popular group buying was those aged 31 to 40 years old, making up half of the buyers seen in February. NAEA agents also reported 22% home buyers were looking to re-locate, while the average length of time it takes to buy a property in the UK is 11 weeks from sale agreed through to completion. ‘The housing market remained strong in February with first time buyers continuing to turn out in force. As confidence in the housing market continues to rise, NAEA agents expect the number of first time buyers to remain strong,’ said NAEA president Jan Hÿtch. ‘This confidence may be increasing, but the lack of properties entering the market has slowed considerably and is a real concern that needs to be addressed now, particularly for those already on the housing ladder who want to move onwards. With Help to Buy making it easier for new purchasers with low deposits to buy a home, the appetite for buying in this price range, combined with the diminishing supply of first time buyer properties, could drive property prices up further in this sector,’ Hÿtch added. Continue reading
Estate agents see signs of improved property supply in the UK
A sharp rise in home owner equity in the UK is set to increase the property supply as even first time buyers in London seem undeterred by property price increases, it is claimed. Indeed, the latest data from haart estate agents shows that first time buyers in London reached a new annual high with registration up 55.3%. This comes at a time when UK property prices have increased 7.9% annually to £191,375, while in London prices are up year on year by 23.6% to £474,359. The firm also says that the national property market is buoyant with a 21.3% increase in property sales. ‘Home owners across the UK, who have on average accumulated equity of over £14,000 in their property over the past year, are expected to take advantage of their growing assets by remortgaging or downsizing this spring,’ said Paul Smith, chief executive officer of haart. ‘The downsizers will ease the current shortage of supply which will help to quell rising house prices. The increase in equity is now more than £90,000 annually in London. First time buyers are undeterred by property price rises and are now at their highest level in London over the past 12 months as banks continue to support lending to this group of buyers,’ he explained. He also said that a lack of reform for the much criticised Stamp Duty property tax means the continuation of a dysfunctional housing market. ‘In one fell swoop the Chancellor George Osborne could have increased the supply of homes for sale and capped rising house prices helping every level of the housing ladder,’ Smith pointed out. ‘Instead he’s turned a blind eye and given nothing to the majority of home buyers and sellers rather than throwing them a lifebelt,’ he added. Continue reading
US home prices expected to rise 3% in next 12 months, says latest forecast report
US property prices are expected to rise 3% in the next 12 months but growth will depend on location, according to the latest real estate market report from Zillow. The Zillow Home Value Index rose to $169,200 in February, up 5.6% year on year and the number of homes listed for sale on Zillow was up 5.5% annually. However, the firm says that as the spring home buying season heats up, buyers and sellers nationwide can expect very different experiences when it comes to negotiating power. According to the latest Zillow analysis of national buyers' and sellers' markets, sellers in the West will likely have the upper hand in negotiations when selling their home, while buyers in Midwestern and East Coast metros will likely face less competition and have more room for bargaining on prices. The Bay Area, San Antonio and Los Angeles are the top prospects for sellers and Cleveland, Philadelphia and Tampa the top of the list for buyers, according to Zillow. In this analysis, a sellers' market is not necessarily one where home values are rising, but rather one in which homes are on the market for a shorter time, price cuts occur less frequently and homes are sold at prices very close to, or greater than, their last listing price. In buyers' markets, homes for sale stay on the market longer, price cuts occur more frequently and homes are sold for less relative to their listing price. The real estate data in markets on both coasts are telling markedly different stories, the report says. ‘Relatively strong job markets in the West are helping spur robust demand, which is being met with limited supply, causing rapid home value appreciation and giving sellers an edge. In the East, housing markets are appreciating a bit more slowly, and homes are staying on the market longer, which helps give buyers the upper hand,’ said Zillow chief economist Stan Humphries. ‘In general, buyers in sellers' markets this spring can expect tight inventory, increased competition and a greater sense of urgency. Sellers in buyers' markets may need to be prepared to lower their asking price, or to wait longer for the perfect buyer to come along,’ he explained. ‘As we put the housing recession further in the rear view mirror, the broad based dynamics that applied during those days, when all markets were reacting similarly to nationwide economic conditions, are fading. Real estate has always been local, and as the spring market gains momentum, this old adage will only become more pronounced,’ he added. He also pointed out that but both monthly and annual US home value appreciation slowed to their lowest paces in months. National home values were almost flat in February from January, and were up 5.6% from February 2013. The pace of home value growth has slowed in recent months as more inventory of for sale homes has helped meet demand. Nationwide, while inventory remains tight, the number of homes listed for sale on Zillow was up 5.5% annually… Continue reading
