Tag Archives: yahoo
Average price of a home in Auckland reaches new all-time high
The average price of residential property in Auckland, New Zealand, increased to a new all-time high of $822,148 in May, a month on month rise of 2.2%. Indeed, since February prices in the city have now increased by 10% and sales are also strong, according to the latest data from real estate agent Barfoot & Thompson. The data also shows that the median price in May at $750,000, a fall of $3,500, or 0.5% compared to April but since February the median prices has increased by 9.2%. In May sales activity was extremely strong with sales numbers up over those for April by 14.5% and buyers have continued confidence in the market, according to Peter Thompson, managing director of Barfoot & Thompson. ‘Buyers are mindful that prices are at an all-time high, but the combination of a sound economy, low mortgage rates and a housing shortage gives them confidence prices are not on the verge of retreating,’ he added. He pointed out that measures announced in the May Budget had no impact on market activity. ‘If the budget initiatives are to have any influence they are likely to show up in June’s activity,’ he added. With sales in May at 1,225 it was the third month in a row that the firm sold more than 1,000 homes in a month, a milestone that was never achieved in 2014. The firm experienced a major listing drive in April and early May, and through this achieved 1,740 new listings in May, the highest number in a May for eight years. ‘As a consequence of high sales in May by month end we had only 3,060 properties on our books. There have been only two months over the past 16 months when we have ended the month with a lower number of properties,’ said Thompson. Sales of properties for in excess of $1 million attracted strong buyer interest and the firm sold 362 properties in this high end category, the second highest number on record behind March’s 420. However, property sales for under $500,000 at 163 were, for the third consecutive month, below the number of $1 million sales. Continue reading
Prime central London rents adjust downwards, latest analysis shows
Annual residential rental value growth in prime central London eased to 3.4% in June, reflecting a positive but hesitant mood in the lettings market, a new report suggests. While June marked the twelfth consecutive month of annual growth, demand has been inconsistent ahead of an expected seasonal upturn in the summer as companies digest the outcome of the general election. In similar fashion to the sales market, the prime central London lettings market is in a period of adjustment following an election result that few predicted, according to the report from international real estate firm Knight Frank. The report also reveals that prime gross yields remained at 2.96% for the second month running and high stock levels in some areas means setting realistic asking rents has become more important. ‘One example is high stock levels in some areas, the result of landlords having waited for clarity around the result of the vote before deciding whether to let their properties,’ said Tom Bill, head of London residential research at Knight Frank. ‘The health of the prime central London lettings market is linked to that of the UK economy and some perceive it to be on a firmer footing under a majority Conservative government, which has caused stock levels to rise,’ he explained. ‘Properties for sale are also moving across to the lettings market, the result of some vendors choosing the rental option after a post-election spike in prices failed to The result of higher stock levels is that prospective tenants are shopping around to a greater extent than before, which means setting realistic asking rents has become increasingly important,’ he added. However, the picture is mixed across different markets and there is a shortage of family houses in areas including Kensington and St John’s Wood, as more families opt to rent due to affordability constraints in the sales market. The report also points out that the impact of the election on decision making by large financial institutions over whether they remain in the UK will also have a bearing on demand in the second half of 2015. For example, some banks are reviewing whether to stay against the background of an in-out European Union referendum as well as a wider debate surrounding the merits of the bank levy and plans to claw back bonus payments. Continue reading
US pending home sales at highest for over nine years
Pending home sales in the United States continued to rise in May and are now at their highest level in over nine years, the latest index data shows. Gains in the Northeast and West were offset by small decreases in the Midwest and South, according to the Pending Home Sales index from the National Association of Realtors which is a forward-looking indicator based on contract signings. The index climbed 0.9% to 112.6 in May from a slight downward revision of 111.6 in April and is now 10.4% above May 2014 when it was 101.9. The index has now increased year on year for nine consecutive months and is at its highest level since April 2006. According to Lawrence Yun, NAR chief economist, contract activity rose again in May for the fifth straight month, increasing the likelihood that home sales are off to their best year since the downturn. ‘The steady pace of solid job creation seen now for over a year has given the housing market a boost this spring. It's very encouraging to now see a broad based recovery with all four major regions showing solid gains from a year ago and new home sales also coming alive,’ he explained. However, Yun warned that this year's stronger sales amidst similar housing supply levels from a year ago have caused home prices to rise to an unhealthy and unsustainable pace. ‘Housing affordability remains a pressing issue with home price growth increasing around four times the pace of wages. Without meaningful gains in new and existing supply, there's no question the goalpost will move further away for many renters wanting to become home owners,’ he added. The PHSI in the Northeast increased 6.3% to 93.9 in May, and is now 10.6% above a year ago. In the Midwest the index declined 0.6% to 111.4 in May, but is still 7.8% above May 2014. Pending home sales in the South decreased 0.8% to an index of 127.8 in May but are still 10.6% above last May. The index in the West rose 2.2% in May to 104.5, and is 13% above a year ago. Continue reading
