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Global economic outlook and general election impacting on UK property markets
A more challenging domestic and global economic outlook and political uncertainty in the lead up to next year’s general election are having an impact on property price growth in the UK. According to the latest analysis report from Knight Frank while the first interest rate rise for years is now expected in the second half of 2015, the UK economy is facing additional challenges from overseas. It points to the continued problems in the Eurozone, the withdrawal of quantitative easing in the United States and the fact that global economic growth has also slowed to a six month low. ‘It is a combination of these factors which prompted the Bank of England to push back its expectations of when the first base rate rise will occur. With a much more benign outlook for inflation, the markets are now pricing in a rise in October 2015, with the expectation that the base rate will still only be at 1% well into 2016,’ said Grainne Gilmore, head of UK residential research at Knight Frank. ‘As a result of the new outlook for interest rates, mortgage rates have receded again, which is good news for home buyers and those re-mortgaging their home. However there are also factors weighing on the mortgage market which are likely to feed through to slower activity, such as the new loan to income criteria from the Bank of England, as well as the new rules for mortgage applications under the Mortgage Market Review started in April this year,’ she pointed out. The analysis report also points out that UK house prices rose by 0.5% in October, with the annual rate of growth slowing to 9%. Prime central London house prices remained static in October, the first month in four years in which no growth was recorded. Annual growth in prime central London prices slowed to 6.5% and rents in the prime Home Counties market fell by 0.8% in the third quarter of the year but the annual rate of growth moved into positive territory at 0.1%. ‘Residential property price growth is slowing across the country, including prime central London where the political uncertainty in the run-up to the election, especially over a potential mansion tax, is tending to weigh on activity,’ added Gilmore. The report records that prime central London prices did not rise in October, but are up 6.5% year on year. But price growth in the prime central London market continues to moderate amid growing political uncertainty in the run-up to next year’s general election. ‘The election is primarily causing unease because of the property tax measures which depend on the outcome. Both Labour and the Liberal Democrats have pledged some sort of tax on higher value properties, whether a ‘mansion tax’ or a re-banding of council tax,’ explained Gilmore. ‘Ed Balls, the shadow chancellor, pledged that those in homes currently valued at £2 million to £3 million a year would not pay more than £250 a month, or £3,000 a year (after tax) as part… Continue reading
Median and average sale prices continue upwards in Miami, latest data shows
The performance of the Miami real estate market remains consistent with record activity in 2013 due to strong demand despite increased existing and new construction supply, it is suggested. Median and average sales prices continue to rise, according to the latest statistics from the Miami Association of Realtors. In the third quarter, the median sales price for homes in Miami-Dade County was $250,000, an increase of 8.7% compared to last year while the median sale price for condominiums rose 3.5% to $189,900. These third quarter price increases mark 11 consecutive quarters of growth for both single family homes and condominiums. ‘The Miami real estate market continues to attract the attention of both domestic and foreign buyers, fuelling solid growth and creating opportunities for both buyers and sellers, said Liza Mendez, chairman of the association’s board. ‘While there is more supply available than a year ago, there is still strong demand, and the growth of supply, new listings, sales and prices is more moderate, resulting in a more balanced market,’ she added. In Florida the state wide median sales price for single family existing homes in the third quarter was $182,000, up 4% from the same quarter a year ago, according to the latest housing data released by Florida Realtor. The median sales price for condominiums in Florida was up 6.9% compared to the same quarter last year at $139,000. Compared to last year, the average sales prices for single family homes and condominiums in Miami-Dade County increased 14.9% to $438,431 and 3.8% to $341,927, respectively. There were 7,632 homes and condos sold in Miami-Dade County during the third quarter of 2014, a decrease of 5% compared to the third quarter of 2013, when there was record sales activity. Sales of single family homes increased 0.2% to 3,552, while condominium sales decreased 9% to 4,080 compared with the same period in 2013. ‘In Miami, market performance continues to vary greatly depending on location, property type, price range and other factors,’ said Franciso Angulo, residential president of the Miami Association of Realtors. ‘While in most cases, increased supply is offering buyers more choices and less pressure, others are still experiencing significant competition and bidding wars,’ he explained. He pointed out that the Miami Association’s initiatives to increase inventory and focus on assisting members to get more listings has proven successful along with some additional distressed properties coming on the market. In addition, the fact that sales remain at historically strong levels while inventory is growing points to seller confidence. Sellers are listing properties for sale because they have confidence in the market, according to Angulo. Home and condominium listings also increased in the second quarter but by narrower margins. There were 6,237 new single family home listings during the third quarter, a growth of 5.1% relative to the same period last year. New condominium listings increased by only 1% from 8,282 in the third quarter of 2013 to 8,366 this year. At the current sales pace, current inventory represents 5.7 months of inventory for single family… Continue reading
Drones allowing estate agents to give an extra dimension to property marketing
Estate agents are known for going that extra mile to get a sale and now they are set to embrace the very latest technology to make sure a property looks its very best. Savills is one real estate company that is leading the way in their use of drones and have explained how they are increasingly helping estate agents to market properties. It enables them to take airborne photographs and videos to help market properties. The firm says that drones, or unmanned aerial vehicles (UAVs), present a number of advantages over traditional aerial photography techniques. They’re are measurably much cheaper and can produce better quality video than helicopters. Also, with the necessary consents they can be flown almost anywhere unlike aerial masts which must be set up and positioned, and are limited in height. Additionally, many commercial drones are based on the open source Arduino platform, which allows savvy users to customise them to a specific purpose. Savills began using UAVs to market homes on a wider scale in 2012, having seen their potential to convey properties in 3D, and thereby bringing the property to life for potential buyers. To date, the company has used drones on many occasions, including for Donhead House in Wiltshire, and Lasborough Park and Bell’s Castle also in Gloucestershire. They have found that drone-captured video and photography can offer not only the dramatic details of a property, but a sense of place, something that can be difficult to capture using traditional techniques. ‘It’s not just about selling the house, it’s also about selling lifestyle and the wider area. A brochure would normally lead with images of the house and formal gardens, whereas a video can capture the whole,’ said Ed Sugden, director of Savills Country House Department. ‘It allows a potential buyer to look beyond the brochure, and allows us to convey a lot of information far more quickly and efficiently,’ he added. However, it is not as simple as letting the drone do all the work. There is an art to using drones as well as a science, and one common mistake is showing too much of the property’s roof. Savills advises taking video and photography from a 45 degree angle, which allows the property’s best attributes, including its grounds and architecture, to be captured in the most aesthetic way. The novelty of drone photography itself can also help to capture buyer interest, and encourage people to take it forward with a viewing. So far, this strategy has been working for Savills and their clients. For example, one property’s video has had over 7,000 visits from around the world, which must lead to more viewings and interest. However, as useful as they are, drones aren’t suitable for every situation. ‘If a particular house has a pig farm on one side, a pylon and a motorway on the other then an aerial overview is not the… Continue reading
