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US pending home sales up for fourth month in a row, latest index shows
Pending home sales in the United States rose in April for the fourth straight month and reached their highest level in nine years, according to the latest data. This rise was led by the Northeast and Midwest, but all four major regions saw increases in April, according to the pending home sales index from the National Association of Realtors. The forward looking indicator based on contract signings increased 3.4% to 112.4 in April from a slight upward revision of 108.7 in March and is now 14% above April 2014, the largest annual increase since September 2012. The index has now increased year on year for eight consecutive months and is at its highest level since May 2006 when it was 112.5. According to Lawrence Yun, NAR chief economist, the steady gains in contract activity each month this year highlight the fact that buyer demand is strong. ‘Real estate agents are saying foot traffic remains elevated this spring despite limited, and in some cases severe, inventory shortages in many metro areas,’ he said. ‘Home owners looking to sell this spring appear to be in the driver's seat, as there are more buyers competing for a limited number of homes available for sale. As a result, home prices are up and accelerating in many markets,’ he added. Following April's decline in existing home sales, Yun expects a rebound heading into the summer, but the likelihood of meaningful gains will depend on a much needed boost in inventory and evidence of moderating price growth now that interest rates have started to rise. ‘The housing market can handle interest rates well above 4% as long as inventory improves to slow price growth and underwriting standards ease to normal levels so that qualified buyers, especially first time buyers, are able to obtain a mortgage,’ explained Yun. After falling four straight months, the index in the Northeast bounced back solidly, up 10.1% to 88.3 in April, and is now 9.4% above a year ago. In the Midwest the index increased 5% to 113 in April, and is 13.3% above April 2014. Continue reading
New research reveals annual housing costs in England and Wales now above £5,500
The total annual cost of housing across England and Wales is approximately £133 billion, with households paying an average of £5,593 per year according to new research. While mortgage interest and repayments make up 49% of the total cost, private rents now account for 36% of housing costs, the research from international property adviser Savills shows. However, there is significant regional variation around this figure, reflecting a wide geographical divide. In London there are relatively few households who own their own home mortgage free, private rent makes up almost half of the total cost of housing, bringing the average cost per household to £11,329. Meanwhile, in the North East where housing is comparatively less expensive in each tenure group and 24 per cent of the cost of housing is in the form of social rent, the average cost per household is £3,450. ‘London households foot the bill for over a quarter of the total annual cost of housing in England and Wales, due to a combination of the most expensive housing and the smallest percentage of homes owned outright,’ said Lucian Cook, head of Savills UK residential research. ‘Other major cities such as Manchester, Nottingham, Liverpool and Southampton also have some of the highest levels of households with housing costs, but the availability of more affordable property across all tenures reduces the total cost per home in these locations,’ he added, At a more local level, of the 30 most expensive places to live by total cost per household, only six are outside London, namely Elmbridge, South Bucks, Winsor and Maidenhead, Epsom and Ewell, St Albans and Guildford. The least expensive locations reflect not just lower value housing markets, but also where there are relatively high proportions of older home-owning households who have paid off their mortgage, such as Powys, Staffordshire Moorlands and Eden Continue reading
House prices in England and Wales up 0.9%, month on month, latest index shows
House prices in England and Wales increased by 0.9% in April and 5.1% year on year to an average of £179,817, according to the latest index from the Land Registry. But price are still below the peak of the market in November 2007 when prices averaged £181,014. The April data also shows that the London market continues to grow with prices up 2.3% month on month and 10.9% year on year, taking the average price of property in the capital to £474,544. The North East saw the only annual price fall with a decrease of 0.6%. However it is Yorkshire and the Humber which has experienced the greatest monthly price rise with growth of 2.7% while Wales saw the largest monthly decrease with a fall of 1.1%. Overall the number of property transactions has decreased over the last year. From November 2013 to February 2014 there was an average of 73,156 sales per month. In the same months a year later, the figure was 64,196. Government investment in the north of England could be responsible for the boost in some northern regions, according to experts. According to Nicholas Leeming, chairman of national estate agents Jackson-Stops & Staff. ‘London continues to outperform the rest of the country, even though sales levels over £1 million were down year on year in February, probably due to the threat of mansion tax. But increased investment in Yorkshire, Humberside and the evolution of the Northern Powerhouse in Manchester have contributed to a surge in confidence in these areas. Greater Manchester is shaping up to be a great place to invest as major London companies continue to establish a presence in the City,’ he explained. Continue reading
