TSI
Lower end US housing market set to be the best performer in 2015
The lower end of the residential real estate market in the United States is set to outperform other property sectors in 2015. Most housing markets will see declining gains at a national and regional level, but the low tier segment of the market nationally is forecasted to grow at around 3%, according to the latest property report from Clear Capital. The index report shows that in December the low tier segment, that is homes selling for under $95,000, saw double digit gains of 10.4% nationally. But that too is set to slow. The report says the low tier of the Midwest could see growth of 7%, which is more than double that of the national forecast for this segment, and more than 5% ahead of the West at 1.7%. Price growth in the Midwest is expected to outpace the nation on all tiers by 1.6%, nearly double that of the country as a whole in 2015. A cluster of metro areas that are projected to see some of the highest price growth over the next year are also located in the Midwest. Ohio leads the pack with the highest number of metros at the top of the firm’s forecast with predicted price growth in Columbus, Dayton, Cleveland and Cincinnati ranging from 2.2% to 4.5% in 2015. Dayton ended 2014 with gains in median home prices of 16.5% over the year. This is a drastic increase for a metro market that saw a price decrease of 2.3% just a year ago. Cincinnati also showed strong signs of growth at the end of 2014, with median sales price increasing by 9.1% in December, and an increase of 17.2% from 2013. Double digit gains are set to cease. While the West continued to outshine the other three regions with 8.7% growth at the end of 2014, this is more than a 10% drop from where the region ended 2013 with 18.9% growth. T The Midwest followed close behind with 7.7% price growth over the year in December 2014, down just 2.3% from 10.1% a year ago. The South and Northeast finished 2014 with 6% and 2.9% price growth, respectively, with these regions also seeing moderation to price gains from 2013. At the national level, December home price growth ends 2014 at 6.4%, down from 10.9% a year ago, with continued moderation in quarter over quarter gains throughout 2014, ending 2014 at 0.9%. The firm is predicting another wait and see year and expects continued moderation for 2015. ‘A year ago, we forecasted the start of a more mature recovery with year-end gains between 3% to 5% for the nation, and with price appreciation moderation one of the only consistent trends in 2014,’ said Alex Villacorta, vice president of research and analytics at Clear Capital. ‘In 2015, we will see the natural progression of the housing market regressing back to normal rates of growth. Current price trajectories suggest that price growth at the national level will continue to moderate… Continue reading
NAEA issues advice for selling a property in the cold, dark winter months
Selling a home in the UK in winter can be difficult but ensuring the garden looks it best even in these darker months can help, according to estate agents. For the best chance to sell your home it is important to make sure the property stands out and taking steps to make sure it looks welcoming, says the guide from the National Association of Estate Agents (NAEA). ‘Winter can be cold, dark and wet, which often means properties are unable to promote some of their best features. By incorporating a few simple tips, sellers can enhance their property’s look and feel and increase their chance of attracting an offer,’ said NAEA president Simon Gerrard. ‘Quite often, it is the smallest changes to a property that can make it stand out over others. A warm, inviting atmosphere in the dreary winter months is key. Simple things such as making sure a home is warm and well lit can improve saleability during the darker months and additions such as welcoming garden lights to enhance the entrance to your home can appeal to buyers’ imaginations,’ he explained. The NAEA said sellers need to realise that first impressions still count and 0utside is where the biggest impact of the bad weather will be and this is obviously the first sight a prospective buyer will have. Winter can make the front garden and paths look dull and dirty, so ensuring these are clean and clear of leaves will improve the attractiveness of the property. Home owners are advised to check the gutters and drain covers are properly cleared of dead leaves and other debris as leaky gutters and down pipes cause damage and are unsightly. Also, a messy garden can signal the need for too much work and thus detract buyers. If possible, vendors should clear patio furniture away, if not at least ensure they are securely covered. Fix or secure any loose fence panels or gates. It is also advisable to cut back overhanging branches as this will help brighten the property. People are urged to ensure the property is well lit. This means making sure all lights work, including the security lights. If a viewing takes place during the day, open all of the curtains and blinds to ensure as much natural light as possible can enter the home. Making sure the doorways, entrance, stairs or porch are clear of clutter can help create an inviting home. The NAEA also says it is important to make your house feel warm and homely. If a buyer enters a property that is cold they’re unlikely to stay long. Smell is also important. You are going to get a bad reaction from buyers if there is an odd aroma or damp smell hanging around. So freshen up, let some fresh air circulate and the old cliché of fresh bread or roasting coffee really does work. If you are going away for any period over the winter the heating should… Continue reading
New UK stamp duty rates subdue sentiment in high value home markets
Prime London house prices rose by an average of 2.6% in 2014, but for the first time since the credit crunch the UK’s prime regional markets marginally outperformed the capital with growth averaging 3.2%. According to the latest analysis from Savills 2014 was a year of two halves for the prime London residential market. Prices rose by 4.9% on average in the first half of the year and fell by a net figure of 2.2% in the second half, its prime London index shows. The firm says that the increased rates of stamp duty introduced by the Chancellor in his Autumn Statement resulted in an adjustment in values at the top end of the market, most notably in prime London and parts of its high value extended commuter belt. As a result, the average all prime London index where values average £2.6 million recorded a 2.6% fall in the final quarter of 2014. However, London’s prime markets up to £1 million and in the £1 million to £2 million range were less adversely affected by the stamp duty changes and would also be less affected by opposition proposals for a mansion tax. As a result, they saw annual price growth of 6% and 2.5% respectively. The greatest impact of the stamp duty increase was seen in the most valuable markets of prime central London, which have seen the strongest price growth in recent years. In these central markets, where prices average £4 million, values fell by 4.2% in the last quarter of the year, contributing to small falls of 1.3% year on year. ‘It will take time for the effect of the stamp duty changes on prices to become clear, early signs are that the additional cost is predominantly being borne by sellers through price adjustments at a level similar to the extra stamp duty,’ said Lucian Cook, Savills UK head of residential research. ‘Prices were easing before the Autumn Statement, so for the very top end of the market the stamp duty rise coincided with some of the froth coming off pricing earlier in the quarter. Our analysis suggests that even without the stamp duty changes, values were on track to soften by around 1% in this last quarter, in part due to general pre-election uncertainty around high value property taxation,’ he explained. Early indications are that the prime markets outside London have been less impacted by the new stamp duty rates and would also be less affected by further taxation in the form of a mansion tax. In the sub £1 million prime market across the UK, average prices rose by 4.6% in 2014, fuelled by particularly strong growth in the first six months of the year. These lower value prime markets, particularly those that are well-connected to London, are forecast to see the strongest growth over the next year and… Continue reading
