TSI
Average property prices still falling in Spain, but sales are up
Although the recovering in housing sales in Spain continues with transactions up by 1.9% in April, prices are still falling, the latest figures show. The data from the General Council of Notaires shows sales up almost 2% in April but prices down by 3.9% year on year nationally. Overall a total of 30,758 transactions were completed which the council says ‘reflects the stabilisation in monthly sales’. The average price of homes bought in April was €1,188 per square meter with new homes, the data also shows and the number of mortgages available is rising, up 12.3% year on year. Buyers are also able to get higher loans with the average mortgage sixe up 9.2% to €122,119. Meanwhile, the average Spanish home costs €200,000, according to the annual Spanish housing market report from appraisal firm Euroval. But there are considerable regional variations in values. In Barcelona, for example some 54% of homes for sale are offered at less than €254,000, whilst in Madrid 61% of homes for sale cost less than €247,000. While in cities like Alicante, on the Costa Blanca, 58% of homes have a price below €143,000. The Euroval report also looks at what has been happening in the Spanish property market in the last couple of years and shows that sales increased by 21.63% between 2013 and 2014. It also shows a decrease in the number of new homes being sold and the largest numbers of transactions are still taking place in Andalusia, which represents 19.2% of the total volume. When it comes to valuation activity, the firm reports an 11.5% increase in 2014 over the previous year, after eight consecutive years of declines. But this is just 30% of the volume of appraisals which were carried out in 2005. Continue reading
UK prices down 0.2% in June, market sees smallest annual growth since 2013
UK house prices fell by 0.2% in June which meant that annual house price growth moderated to 3.3% from 4.6% in May, according to the latest index report. This takes the average price of a home to £194,258, according to the monthly index from lender Nationwide. The data also shows that in the second quarter prices increased by 1% and are up 4.1% compared to the same quarter in 2014. Eleven of the thirteen UK regions covered in the index saw a slowdown in the annual rate of growth in the second quarter of the year and it is the smallest annual rate of increase for two years. However, most parts of the country continued to see annual house price gains apart from Wales and Scotland which recorded small declines. The North remained static while Northern Ireland and London have the highest annual growth. Indeed, Northern Ireland overtook London to become the strongest performing region, with average prices up 8% year on year but prices remain around 45% below their 2007 peak. London saw a further softening in annual price growth to 7.3%, compared with 12.7% in the first quarter of the year. The Outer Metropolitan area followed closely behind, with annual price growth of 6.8%. The North was the weakest performing English region, with prices essentially unchanged compared with the same period a year ago. Wales saw a 0.8% year on year fall in average prices, similar to the previous quarter while Scotland was weakest performing region with a 1% fall in prices. ‘This maintains the gradual downward trend that has been in evidence since the middle of 2014,’ said Robert Gardner, Nationwide's chief economist, but he added that house price growth continues to outpace earnings. He also pointed out that the slowdown in house price growth is not confined to, nor does it appear to be driven primarily by, developments in London. In quarter on quarter terms, London has continued to see price growth at or above the rate in the UK overall over the past three quarters, while the annual rate of price growth in the capital remains the second highest in the country. He believes that given the gap between population growth and rates of house building, housing stock is likely to be used increasingly intensively until building activity catches up. ‘There are signs that this has been occurring, with the number of vacant properties trending down since 2008, though council tax changes in 2013 impacted reporting and probably overstate the decline in the last two years,’ Gardner explained. He added that the strong relationship between supply constraints and vacancy rates is clearly visible at the regional level. ‘As you might expect, regions where affordability is more stretched see far fewer vacancies. For example, in London, the UK region where affordability is most stretched, only 1.7% of the housing stock was vacant in 2014, around half the 3.5% rate prevailing in the North of England,’ said Gardner. ‘Given… Continue reading
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
