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Pending home sales in the US down slightly, latest index data shows
Pending home sales in the United States fell slightly in November for the third time in four months as buyers continue to battle both rising home prices and limited homes available for sale. Overall modest gains in the Midwest and South were offset by larger declines in the Northeast and West, according to the latest pending home sales index from the National Association of Realtors (NAR). The forward looking indicator based on contract signings decreased 0.9% to 106.9 in November from an upwardly revised 107.9 in October but is still 2.7% above November 2014. The data also shows that although the index has increased year on year for 15 consecutive months, November’s annual gain was the smallest since October 2014 when it was 2.6%. Lawrence Yun, NAR chief economist, said that November's dip in contract activity continues the modestly slowing trend seen ever since pending sales peaked to an over nine year high back in May. ‘Home prices rising too sharply in several markets, mixed signs of an economy losing momentum and waning supply levels have acted as headwinds in recent months despite low mortgage rates and solid job gains,’ he said. ‘While feedback from realtors continues to suggest healthy levels of buyer interest, available listings that are move-in ready and in affordable price ranges remain hard to come by for many would be buyers,’ he pointed out. Continue reading
UK experiencing a crisis in supply of homes for sale
There are 10 buyers for each property for sale in the UK as the supply of homes on the market has fallen again, reaching crisis level according to estate agents. At the same time sales to first time buyers fell in November even although the number of house hunters increased, the latest monthly report from the National Association of Estate Agent (NAEA) shows. After a promising period from July to October in which the number of sales made to first time buyers grew, in November, the percentage of sales made to the group fell by 10%, it also shows. Sales as a whole were down by 1% and while this is typical of this time of year sales to first time buyers are down dramatically and estate agents believe it will only get worse. The Chancellor George Osborne outlined plans to help first time buyers get on the housing ladder during his Autumn Statement but over half, 53%, of NAEA members think the group will continue to feel squeezed out of the market, due to the lack of affordable housing. The lack of supply and growing demand for housing continued to drive the market in to the ground, as the number of house hunters grew by 20% and available stock fell. In October, there were 336 house-hunters on average registered per branch, rising to 403 in November. The report also points out that available housing decreased marginally in November, from 43 properties managed per branch last month, to 41 this month meaning there are now 10 prospective buyers battling it out for each property. ‘It’s very normal at this time of year that demand is high and supply is low. House hunters hoping to find their dream property in the New Year have registered interest with agents, whilst those hoping to sell are holding off putting their properties on the market before January. However, supply is outweighing demand so heavily now that it can’t solely be attributed to seasonality,’ said Mark Hayward, NAEA managing director. ‘It’s clear that we’re faced with a crisis here and the housing market needs addressing as a matter of urgency. Our recent Housing 2025 report compiled with Association of Residential Letting Agents (ARLA) and Centre for Economics and Business Research (Cebr) found that by 2025, house prices are set to rise by 50% – and if we don’t act now, this will impact first time buyers, second steppers and last steppers, forcing many out of home ownership,’ he explained. ‘The Government has made efforts to address the issue of supply and demand, with Osborne outlining plans to build 200,000 new starter homes in his Autumn Statement, but four fifths of our agents think it simply isn’t enough. It’s all very well planning to build houses, but we need to move to action and get and the bricks and mortar on the ground, if… Continue reading
UK govt launches pilot scheme to directly commission new homes
Thousands of new affordable homes are to be built by the UK government on public owned land in a bit to speed up its home building programme. In a pilot scheme on five sites in England, the government will ‘directly commission’ the building of up to 13,000 new homes, assuming responsibility for developing land instead of large building firms. Up to 40% of the homes are described as affordable starter homes on the sites at Old Oak Common, in north west London, former barracks in Dover, former Ministry of Defence land in Northstowe, Cambridgeshire, a former hospital site at Lower Graylingwell, in Chichester, and a MoD site at Daedelus Waterfront in Gosport. Prime Minister David Cameron said the move is a huge shift in government policy. ‘Nothing like this has been done on this scale in three decades, the government rolling its sleeves up and directly getting homes built,’ he added. The government will also announce a £1.2 billion fund to build 30,000 affordable starter homes on underused brownfield land in the next five years and the move will fast track the creation of at least 30,000 new starter homes by 2020. ‘Today's radical new approach will mean the government will directly commission small and up and coming companies to build thousands of new homes on sites right across the country,’ said Communities Secretary Greg Clark. ‘This, and the £1.2 billion new Starter Homes Fund, will help thousands of people to realise their dream of owning their own home,’ he added. Continue reading
