TSI
Finding the right property often relies on gut instinct, survey finds
When looking for a new home many people have a gut feeling about whether or not they can see themselves living in a particular property, a new survey has found. Continue reading
Solid home price growth in the US in last quarter of 2014
Home prices in the United States posted solid gains in the fourth quarter of 2014, with the majority of metro areas seeing a slightly stronger price growth. This growth was propelled by tight housing supplies, low interest rates, and a strengthening job market, according to the latest quarterly report from the National Association of Realtors. It means that the national median existing single family home price was $208,700 in the fourth quarter, up 6% year on year and the median existing single family home price rose in 150 out of the 175 metro markets tracked, some 86%. That marks a stronger price gain compared to the third quarter when 73% of the metro areas had posted increases. The data also shows that 24 areas, or 14%, saw double digit increases in the fourth quarter. ‘Home prices in metro areas throughout the country continue to show solid price growth, up 25 percent over the past three years on average,’ said Lawrence Yun, NAR’s chief economist. ‘This is good news for current home owners, but remains a challenge for buyers who are seeing home prices continue to outpace their wages. Low interest rates helped preserve affordability last quarter, but it’ll take stronger income gains and more housing supply to help meet the pent-up demand for buying,’ he explained. Meanwhile, total existing home sales, including single family and condos, fell 1% in the fourth quarter to a seasonally adjusted annual rate of 5.07 million. But existing home sales are still 2.6% higher year on year. By the end of the fourth quarter, 1.85 million existing homes were available for sale, which is slightly below the 2.01 million homes for sale during the fourth quarter of 2013. The average supply was 4.9 months in the fourth quarter. Most economists consider a supply of six to seven months a healthy balance of supply between buyers and sellers. ‘Despite affordable housing conditions in most of the country, an upward pressure on home prices still persists in some metro areas, particularly in the West, where the current supply of new and existing homes for sale is failing to keep pace with overall demand and growing populations,’ Yun pointed out. ‘Unless home builders significantly boost construction, housing supply shortages could develop and lead to further price acceleration this spring,’ he added. The most expensive housing markets in the fourth quarter were San Jose, California, where the median existing single family home price reached $855,000, followed by San Francisco at $742,900, Honolulu at $701,300, Anaheim-Santa Ana, California at $688,500 and San Diego at $493,100. A regional breakdown shows that in the Northeast total existing home sales increased 2.5% in the fourth quarter and are 4.1% below the fourth quarter of 2013. Median existing single family home price was $246,300, up 2.2% from a year ago. In the Midwest existing home sales fell 4.7% in the fourth quarter and are 0.6% below a year ago. Median existing single family home prices reached $162,000, a 6.2% jump… Continue reading
UK landlords becoming more competitive for sought after student market
With more students in the UK living in privately owned hall style accommodation, landlords in the sector are having to compete more to attract them as tenants, new research has found. But they are doing so successfully and 70% of landlords let all of their properties for the 2014/2015 academic year, according to a bi-annual survey from student accommodation website Accommodation for Students. And it is those who are relatively new to the market reporting greatest success at letting their entire portfolio. Some 89% of relatively new property managers, those with one to three years of experience, reported letting their entire portfolio, compared to 65% of those with five to 10 years of experience. Of those that have not let all of their properties yet, just under 50% have let over three quarters of their portfolio and whilst some experienced student landlords are left redirecting rents to renovate their properties, those entering into the market more recently are benefitting from a greater understanding of student expectations and a desire to compete with what the rest of the market has to offer. Consistent with the previous AFS survey in July 2014, 68% of respondents said that in their experience it is better to let to students than non-students, with 87% believing that students make good tenants and 92% expressing their plans to continue renting to students. This is linked to a number of associated benefits with 77% saying it has led to better rental yields, 67% liking a fixed tenancy length and 47% benefitting from an annual market for new students. The survey also shows that 61% of respondents have increased rent across all or some of their portfolio with the majority, 93%, keeping this increase below 10%. There is also a correlation between rental increases and confidence in the market, with those who increased rents for the 2014/2015 letting year feeling up to three times more confident about the future. Market confidence is highest in London and Scotland and lowest in the North West and Yorkshire and the research suggests that landlord confidence in the student lettings market was also linked to whether properties are accredited or not. Indeed, some 59% of respondents stated some or all of their properties were accredited and as a result, were increasingly likely to report being considerably more confident about the market. However, perceived barriers to becoming accredited included it not being considered necessary for a successful let, the associated costs and administrative burden. The level of respondents offering a bills inclusive package has risen to 60% from 56%, although those offering this also report a lower success rate. It is possible landlords use this to improve competitiveness in saturated markets, although previous surveys carried out by AFS have suggested that students look favourably on bills inclusive rental packages. The majority of landlords who do not offer this are deterred by the potential for over usage. ‘This is the second survey of this kind that we… Continue reading
