Uk
Property prices in metro areas in the US continue their upward trend
An uptick in sales activity amidst meagre supply levels upheld the trend of unwavering property price gains in an overwhelming majority of metro areas in the United States during the first quarter of 2016. It means that the median existing single family home price increased in 87% of markets with 154 out of 178 metropolitan statistical areas showing gains based on closed sales in the first quarter of the year compared with the same quarter of 2015, according to the latest data from the National Association of Realtors. Some 24 areas or 13% recorded lower median prices from a year earlier but there were more rising markets in the first quarter compared to the fourth quarter of 2015, when price gains were recorded in 81% of metro areas. The data also shows that 28 metro areas or 16% experienced double digit increases in the first quarter of the year, a slight decrease from the 30 metro areas in the fourth quarter of 2015 while 51 metro areas or 28% experienced double digit increases in the first quarter of last year. Lawrence Yun, NAR chief economist, pointed out that home prices chugged along at a robust pace in most metro areas during the first three months of 2016. ‘The solid run of sustained job creation and attractive mortgage rates below 4% spurred steady demand for home purchases in many local markets,’ he said. ‘Unfortunately, sales were somewhat subdued by supply and demand imbalances and broadly rising prices above wage growth. As a result, the path to home ownership so far this year remains strenuous for a segment of prospective buyers in the most competitive areas,’ he added. The national median existing single family home price in the first quarter was $217,600, up 6.3% from the first quarter of 2015 and the median price during the fourth quarter of 2015 increased 6.7% from the fourth quarter of 2014. Total existing home sales, including single family and condos, rose 1.7% to a seasonally adjusted annual rate of 5.29 million in the first quarter from 5.2 million in the fourth quarter of 2015 and are 4.8% higher than the 5.05 million pace during the first quarter of 2015. ‘In spite of deficient supply levels, stock market volatility and the paltry economic growth seen so far this year, the housing market did show resilience and had its best first quarter of existing sales since 2007,’ Yun explained. ‘The demand for buying is there, but unless the stock of new and existing homes for sale increases significantly especially in several markets in the West, the housing market will struggle to reach its full potential,’ he pointed out. At the end of the first quarter, there were 1.98 million existing homes available for sale, which was below the 2.01 million homes for sale at the end of the first quarter in 2015. The average supply during the first quarter was 4.3 months, down from 4.6 months a year ago. ‘Current home owners… Continue reading
Buy to let property returns up almost 10% year on year in England and Wales
Total returns for buy to let property in England and Wales rose to 9.57% in the 12 months to the end of March, according to the latest buy to let index to be published. Overall buy to let portfolios fell 0.31% month on month, were up by 2.31% quarter on quarter, and by 9.57% year on year, the data from the Property Partner residential market index shows. The growth over 12 months has been led by London where buy to let returns increased by 16.49%, followed by the East of England with a rise of 13.18%, the South East 12.1% and the East Midlands 8.59%. The North West was not far behind with a rise of 8.44% and the South West at 8.42%. The West Midlands saw a rise of 6.08%, Yorkshire and Humberside 4.51% and the North East 2.57%. According to Rob Weaver, Property Partner’s director of investment the strong growth in the year to March 2016 was probably affected by property investors rushing to beat April’s additional home stamp duty deadline. ‘This was especially true of London, where annual returns were in double digits, reaching an eye-watering 16.5%. The East was strong too, and from first hand experience the Northern Powerhouse regeneration plan is boosting investment activity in the North West and in particular Manchester,’ he said. He pointed out that monthly figures can be volatile. ‘What’s clear is that regional disparities in the housing market are widening, with Yorkshire and Humberside and the North East regions looking fragile,’ he explained. He also pointed out that property investors are showing caution ahead of the referendum in June on the future of the UK’s position in the European Union. ‘But the fundamentals of high employment, wage growth, cheap borrowing and the chronic shortage of supply remain in place and are positive,’ he added. The index is the first regular dataset to combine rental income and capital growth to show the total rate of return of residential property investments over time. It is based on research carried out by the property crowdfunding platform Property Partner of Land Registry and ONS data. Continue reading
French property market set to see growth in 2016
Enquiries into French property are up by 60% in the first quarter of 2016 compared with the previous year, the latest data shows, with steady growth predicted for the rest of the year. Figures from the FNAIM, the national association of French estate agents, show that a record breaking 800,000 older properties were sold in 2015. The annual analysis of the French property market from Home Hunts suggests that there was a large resurgence of British buyers last year. It says that it was a good a year for negotiations due to a combination of flexible property prices, low interest rates and favourable currency pairings Overall the prime property market on the Riviera is booming, boosted by price falls inland, and an increase in sales in coastal locations, such as Cannes and Saint Tropez, the report says. It predicts that the prime markets on the Riviera, in Paris, Toulouse, Bordeaux and parts of Provence and the Alps are due to see price rises throughout 2016. While the upcoming referendum in June on the future of the UK in the European Union could have an effect on British buyers' confidence in the market, the firm reports that so far there hasn't been much of a noticeable effect. ‘While the market continues to improve, June’s EU referendum will certainly unsettle certain British clients, but, if there is a Brexit, I don’t believe it will greatly impact those buying property overseas,’ said Tim Swannie, Home Hunts director. ‘So far it does not seem to have affected British buyers’ appetite for French property. The pound has lost a little strength compared to last year, but it is still comparatively high if you look at it over the past five to six years, so British buyers can still really make the most of their budgets,’ he added. However there are also many Dutch, Belgian, German, Scandinavian, Swiss, American and Middle Eastern buyers active in the market and the report points out that the new LGV (Ligne à Grande Vitesse) train line which will connect Bordeaux with Paris in 2017 means that property in the area is increasing in value. Similarly, the TGV now runs from London to Marseille and areas of Provence are becoming more popular as a result. Looking ahead the report suggests which areas of France are likely to be good buys. It says that on the popular Riviera locations such as Biot, Opio, Roquefort-les-pins, and Chateauneuf de Grasse could prove popular as buyers are now getting more for their money. In neighbouring Provence areas such as Bormes-les-Mimosas and Carqueiranne are described as offering excellent value for money. In the south west of the country, another location popular with British buyers, Cahors, Saint-Cirq-Lapopie, and Figeac currently offer better value than the Dordogne, while in Languedoc the city of Beziers is in an area undergoing a facelift and housing stock is starting to move. The report also says that Paris saw increased sales in 2015, particularly in November… Continue reading
