TSI
Sales in Miami soared last month due to increased demand
Sales in the Miami real estate market, one of the most popular US locations with overseas buyers, soared in October, exceeding record activity recorded in 2013. Single family home sales increased by 13.6% compared to October 2013 condominium sales increased 6.5% while combined, residential real estate sales increased 9.5% compared to a year ago. ‘Miami continues to experience population growth, interest from foreign and domestic second home buyers, and economic expansion,’ said Liza Mendez, chairman of the Board of the Miami Association of Realtors. ‘The Miami real estate market continues to strengthen due to demand for local properties, as evidenced by sales that exceed record activity in 2013,’she added. Overall the data shows that single family home prices, which again increased in October, remain at affordable 2004 levels despite 35 months of consistent year on year growth. Condo prices also increased in October, marking 40 months of growth in the last 41months. Condo prices declined in August for the first time in more than three years but rebounded in September. The median sale price for single family homes increased 9.1% to $240,000 but the average sale price decreased 6.6% to $393,515 last month. Compared to October 2013, the median sale price for condominiums increased by 8.8% to $185,000 and the average sale price for condominiums increased 22.3% to $362,657. The association monthly report points out that Miami properties continue to sell rapidly and at nearly asking price, reflecting strong demand. The median number of days on the market for single family homes sold in October was 43 days, an increase of 7.5% from October 2013. The average percent of original list price received was 95.3%, down a negligible 1% from a year earlier. The median number of days on the market for condominiums sold in October was 58 days, an increase of 31.8% compared to the same period in 2013. The average sales price was 93.7% of the asking price, a decrease of 3.9%. Cash sales in Miami continue to decline as more financing becomes available. Still, access to mortgage loans for condominium buyers remains limited, impeding further market strengthening. Some 55.8% of total closed sales in October were all cash transactions, compared to 61.7% in October 2013. Cash sales in Miami are still more than double the national figure of 27%. All cash sales accounted for 40.8% of single family home and 67.8% of condominium closings compared to a year earlier. Since nearly 90% of foreign buyers in Florida purchase properties all cash, this continues to reflect the much stronger presence of international buyers in the Miami real estate market. After three years of record sales activity that resulted in an inventory shortage, seller confidence continues to result in more properties being listed for sale in Miami. But new listings are now increasing by narrower margins, according to Francisco Angulo, residential president of the Miami Association of Realtors. ‘Seller confidence is resulting in greater inventory becoming available in the Miami real estate market. But strong home sales in Miami continue… Continue reading
Equity release from UK homes going on improvements, study finds
The main reason home owners in the UK are choosing to unlock money from their property is to fund home improvements, new research suggests. Equity release lending has reached £1 billion so far this year and the need to renovate is the reason almost half ,48%, of all LV= equity release customers have taken out a loan. However customers are more likely to be making essential modifications such as widening doorways for wheelchair access or installing a stair lift than adding a conservatory or loft extension. The research also shows that people are using equity release to relieve pressure on the purse strings. The figures for the year to date reveal that 15% of the firm’s equity release customers wanted to use the money to top up their retirement income, with a further 9% wanting to clear an outstanding mortgage and other existing debts and loans. Financial necessity has driven much of the demand for equity release. However, treating or helping out family also remains a common reason for choosing equity release, with 10% stating this as their motivation. Whilst using the freed up equity for a holiday accounted for 6% of applications. ‘Whilst home improvements continues to be the most popular reason for using equity release, market growth is also being driven by the need to meet and reduce financial commitments,’ said Vanessa Owen, head of annuities and equity release at LV=. ‘With the reality of living on a low pension income hitting home for many retirees, it makes sense that many wish to unlock the cash tied up in their properties. At retirement, someone’s largest asset is usually their house and for those retirees who wish to stay in the home that they love, then equity release is a solution worth considering,’ she explained. She pointed out that this year’s Budget announcement gives new retirees more flexibility as to how they take their pension, but they will still see their income drop when making the transition from working to retirement. ‘As a result we are likely to see demand for equity release grow as those with small pots look to fund their later years. It is essential that retirees consider all their options and that equity release is considered alongside other retirement income solutions so that they are able to effectively plan for the future,’ she added. Continue reading
House price recovery spreads out in UK, but growth is slowing, says Hometrack index
The top 20 cities in the UK are all registering annual house price growth of 5% or more for the first time in a decade, according to a new index. It is a sign that the housing recovery is spreading, however upward price momentum is slowing, Hometrack’s UK Cities House Price Index shows. It also points out that the annual house price growth is more than three times the current growth in average UK earnings which is 1.3% and explains that pent up demand has fed back into the market supported by low mortgage rates and a pick up in the economy. However, there is clear evidence that the upward pressure on house price is starting to slow on weaker demand for housing. In the last three months, average UK house prices have grown by 0.6% per month compared to 1.1% in the three months to May 2014. The majority of cities are now starting to show signs of a deceleration in the underlying rate of growth but cities with the lowest growth in Spring 2014 such as Glasgow, Edinburgh and Newcastle, have recorded an acceleration as house prices rise off a low base. This latest analysis shows that 11 cities have an average house price below that of the UK with Liverpool and Glasgow house prices 41% lower than the UK average. However, London bucks the trend with an average house price of more than double that of the UK at 117%, illustrating how the capital dominates the rest of the country and is distorting the national picture. The Cities Index also showed a post-referendum bounce in house prices in Edinburgh and Glasgow as confidence improves with average prices up 4.1% and 2.2% respectively in the last quarter. However the market in Aberdeen was down 2% in last quarter and the report says it is being impacted by a weak oil price with house prices declining off a high base. Oxford and Cambridge have seen average prices come off the boil quite sharply in the last three months with a fall of 1.2% and 2.3% respectively, with house prices starting to fall back after very strong gains of 42% and 52% in the last four years. The firm says that these smaller cities are seeing pricing levels respond more quickly to weaker demand. ‘The pick-up in house prices that started two years ago has spread across all UK cities with growth ranging from 5.5% in Liverpool and Glasgow to 18% in London. This latest analysis shows that momentum in house price increases is starting to slow with less pent up demand for housing than two years ago,’ said Richard Donnell, research director at Hometrack. ‘Whilst mortgage rates remain low, new mortgage affordability tests and loan to income caps are impacting on the ability of marginal buyers to access the market, especially in the higher value markets such as London. On top of this, concerns over… Continue reading
