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Miami real estate market continues to be busy, latest data shows
Miami is continuing to be one of the busiest real estate markets in the United States with the latest data showing that median sales prices for all housing types rose in April. The data from the Miami Association of Realtors also shows that single family homes have seen their most robust sales since December last year. ‘The continued stability in Miami’s job market and low interest rates are improving buyer confidence. Not only are we seeing more single family home sales in Miami, but we are seeing more homes and condos listed as seller confidence grows,’ said Christopher Zoller, the association’s residential president. Single family home transactions, which set an all-time Miami annual record in 2014, increased 8% year on year in April while existing condominium sales, which posted the second best year in Miami history last year despite an increase in new condo construction, fell by 6.8%. Single family home prices, which again increased in April, remain at affordable 2004 levels despite more than three years of consistent year on year increases. Condo prices also increased in April 2015, marking 46 months of growth in the last 47 months. The median sale price for single-family homes increased 7% to $260,000 in April 2015 from $243,000 in April 2014. The median sale price for condominiums increased 3.1% in April to $199,000 from $193,000 a year ago. The data also shows that the average percent of original list price received for single family homes was 94.6%, down a negligible 0.1% from a year earlier. The median number of days on the market for single family homes sold in April 2015 was 43 days, equalling last year’s figure. The average percent of original list price received for existing condominiums was 93.1%, a 0.5% decrease. The median number of days on the market for condominiums sold in April 2015 was 63 days, an increase of 14.5% compared to the same period in 2014. Cash deals represented 51.9% of Miami’s total closed sales in April 2015, down from 59.3% in April 2014. Nationally, just 24% of housing transactions are made in cash. Since 82% of foreign buyers in Florida purchase properties all cash, Miami’s high percentage of cash buyers continues to reflect South Florida’s ability to attract international buyers. Condominiums comprise a large portion of Miami’s cash purchases as 65.8% of condo closings were made in cash in April compared to 35.7% of single family home sales. Seller confidence continues to result in more properties being listed in Miami. Active listings at the end of April increased 6.1% year on year and active listings remain about 60% below 2008 levels when sales bottomed. Inventory of single family homes decreased 2.5% while condominium inventory increased 10.9%. At the current sales pace, there is a 5.1 month supply of single family homes, a year on year decrease of 7.8% and there is a 9.1 month supply of condominium inventory, an increase of 17.7% from 7.7 months in April 2014. A… Continue reading
Central London prices set for growth of 18% over five years
House prices in central London set to rise 18% in next five years and rents by 19.5% as market moves forward after the UK’s general election, it is claimed. The latest analysis says that unprecedented uncertainty surrounding last month's election saw a stifling of house price growth across London, with the rate of house price growth at less than 4%, compared to the 9.6% increase seen in 2014. The emergence of the capital as a political scapegoat, with potential rent caps and a mansion tax being discussed, contributed to the sense that London households would bear the brunt of any tax changes, it points out. However both issues have now subsided, following the surprise majority win by the Conservatives, according to international real estate consultants Cluttons. Despite this, the damage done to domestic and international buyers' confidence was reflected in a sharp tailing off in demand during the first quarter of 2015, with both vendors withdrawing properties and buyers adopting a wait and see approach. ‘There is no doubt that the results of the general election have helped to re-inject confidence into the market that had receded early on this year,’ said Cluttons' international research and business development manager, Faisal Durrani. ‘The outlook for the London housing market has stabilised, while buyers and vendors have returned to the market following a conspicuous absence of activity. Our outlook for the rest of the year is for increased stability in the market and a return to a more normal state of activity,’ he added. The report also says that despite the Mortgage Market Review (MMR) contributing to a 16% year on year dip in home purchase loans in greater London to March 2015, affordability appears to be improving slightly, with the average loan size dipping to 3.86 times annual income in the first quarter of 2015. Risks still remain on the international front however. ‘International risks such as the threat of another Scottish referendum, a disorderly Greek exit from the European Union and a potential Brexit mean that the market has moved from a situation of having several unknown unknowns to being left with a handful of known unknowns. A Brexit remains the biggest threat as the impact on the economy is the biggest unknown at this stage,’ Durrani explained. Cluttons forecasts modest central London house price growth in 2015 of between 2% and 3%, before accelerating to nearly 5% in 2016 and stabilising at around 4% per annum between 2017 and 2019. Cluttons expect this level of growth to deliver cumulative capital value appreciation of almost 18% over the next five years. The prospects for the prime central London rental market are stable, with average growth of 4% per annum forecast for the next five years. Cluttons explains that affordability and the desire to purchase remain key challenges for the capital's rental market and while supply levels are rising, the strong rate of job creation in London will help in absorption rates. ‘The more subdued growth forecast… Continue reading
Residential property prices in Dubai still falling, latest analysis suggests
Residential real estate prices in Dubai continued to fall in the first six weeks of the second quarter of this year compared to the first three months of 2015, according to the latest data. However it is not necessarily bad news, according to the mid quarter research report from Phidar Advisory. ‘The ongoing erosion of sale prices is a healthy correction. The more significant concern is the scale and nature of the upcoming launched and announced projects,’ said Jesse Downs, the firm’s managing director. The report shows that apartment lease rates decreased a nominal 2.4%, while sale prices decreased 1.5%, marginally tightening yields. Lease rates for villas decreased 0.6% and sale prices decreased 2.9%, which pushed up yields slightly. In the first five months of 2015, apartment transaction volumes were down a modest 1.5%, compared to the same period in 2014. SFH volumes contracted almost 25%, over the same period. This is based on initial transaction data from the Dubai Land Department, which is subject to revision. The report references income specific supply-demand imbalances. The most vulnerable segment is housing supply with current annual rents of AED100,000 to AED160,000 per annum, which could be oversupplied by up to 40% in five years. ‘If we consider only under construction and launched projects, the majority of the development pipeline is justified due to sufficient total demand,’ said Downs, who added that over building in the middle high income segment is likely to increase competition and lead to supply reordering. The potential for total market disequilibrium increases significantly when adding announced projects into the supply pipeline, the report points out. Total market vacancy could reach 11% by 2020. Factor in a healthy frictional vacancy and the total vacancy rate converts to a 7% oversupply. ‘There is an opportunity to reposition upcoming products to meet the city’s anticipated housing needs. If current announcements convert into launches, the probability for instability by 2020 will increase significantly,’ concluded Downs. Continue reading
