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Lending for home in Wales up 9% in 2014, latest data shows
House purchase lending in Wales increased by 9% last year with a consistent performance throughout 2014, according to the latest data from the Council of Mortgage Landers. First time buyers in Wales borrowed £330 million in the fourth quarter, unchanged compared to the third quarter in value but up 3% in number of loans. Compared to the fourth quarter of 2013, total number of loans was unchanged but the amount borrowed increased by 3%. The number of home movers loans declined quarter on quarter to 3,700, valued at £500 million, which was down 3% in volume and down 2% in value compared to the third quarter. Compared to the fourth quarter of 2013, there was a decrease of 8% in volume and down 2% in value. Remortgage lending increased quarter on quarter in the fourth quarter to 3,200 loans worth £330 million, up 3% in volume but unchanged in value on the third quarter. Compared to the fourth quarter of 2013, activity was down 16% in volume and 13% in value. In 2014 as a whole Wales accounted for 2.8% of the UK wide house purchase activity, down from 2.9% in 2013, the CML data also shows. First time buyer affordability changed slightly in Wales quarter on quarter with first time buyers typically borrowing 3.19 times their gross income, less than the 3.23 income multiple in the third quarter and less than the UK average of 3.38. The typical loan size for first time buyers was £100,625 in the fourth quarter, down from £100,800 in the previous quarter. The typical gross income of a first-time buyer household was £31,930 compared to £31,868 in the third quarter. The relatively low level of interest rates saw first time buyers' payment burden remaining relatively low in the third quarter at 17.9% of gross income being spent to cover capital and interest payments, higher the third quarter's 18.2%. Home mover affordability changed fractionally, with home movers typically borrowing 2.76 times their gross income compared 2.79 in the third quarter and to 3.03 for the UK overall. The typical loan size for home movers was £123,356 in fourth quarter, up from £121,928 in the previous quarter. The typical gross household income of a home mover was £45,310 in fourth quarter compared to £46,032 in the third quarter. Home movers' payment burden remained relatively low in Wales at 17.2% of gross income being spent to cover monthly capital and interest payments, less than the 17.5% in the third quarter and considerably less than the 18.4% UK average. ‘The Welsh market performed consistently over the last three quarters, with roughly the same number of borrowers each quarter taking out loans to buy a home. Improving wider economic conditions, aided by government schemes like Help to Buy, saw the strongest annual house purchase figures in Wales since 2007,’ said Peter Hughes, chair of CML Cymru. ‘Unlike the UK overall, Wales has also seen remortgage loans increase this quarter. This growth across the different lending… Continue reading
Taylor Scott International Opens Mombasa Office
Taylor Scott International (TSI) is proud to announce that its second office in Kenya will be fully operating as of March the 1st 2015 in the Kenyan port city of Mombasa. The new TSI office is located in City Mall … Continue reading
Home sales down almost 5% in the US in January
Existing home sales in the United States declined in January to their lowest rate in nine months, but the pace was higher than a year ago for the fourth straight month, according to the latest index. The data from the National Association of Realtors all major regions experienced declines in January, with the Northeast and West seeing the largest. Total completed transactions fell 4.9% to a seasonally adjusted annual rate of 4.82 million in January, the lowest since last April from an upwardly-revised 5.07 million in December. Despite January’s decline, sales are higher by 3.2% than a year ago. Lawrence Yun, NAR chief economist, said that the housing market got off to a somewhat disappointing start to begin the year with January closings down throughout the country. ‘January housing data can be volatile because of seasonal influences, but low housing supply and the ongoing rise in home prices above the pace of inflation appeared to slow sales despite interest rates remaining near historic lows,’ he explained. ‘Real estate agents are reporting that low rates are attracting potential buyers, but the lack of new and affordable listings is leading some to delay decisions,’ he added. Total housing inventory at the end of January increased 0.5% to 1.87 million existing homes available for sale, but is 0.5% lower than a year ago when it was 1.88 million. Unsold inventory is at a 4.7 month supply at the current sales pace, up from 4.4 months in December. The median existing home price for all housing types in January was $199,600, which is 6.2% above January 2014 and marks the 35thconsecutive month of year on year price gains. ‘Although sales cooled in January, home prices continued solid year on year growth. The labour market and economy are markedly improved compared to a year ago, which supports stronger buyer demand. The big test for housing will be the impact on affordability once rates rise,’ Yun pointed out. The data also shows that all cash sales were 27% of transactions in January, up from 26% in December 2014 but down from 33% in January of last year. Individual investors, who account for many cash sales, purchased 17% of homes in January, unchanged from last month and below January 2014 when it was 20%. Some 67% of investors paid cash in January. Distressed sales, that is foreclosures and short sales, were 11% of sales in January, unchanged from last month but down from 15% a year ago. Some 8% of January sales were foreclosures and 3% were short sales. Foreclosures sold for an average discount of 15% below market value in January, unchanged from December, while short sales were discounted 12%, also unchanged from last month. Properties typically stayed on the market slightly longer in January at 69 days than December at 66 days and a year ago at 67 days. Short sales were on the market the longest at a median of 128 days in January, while foreclosures… Continue reading
