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Housing market cooling in Sydney and Melbourne, latest index data shows
House price growth in Australian capital cities moderated in March with market conditions slowing in Sydney and Melbourne, according to the latest index. The remaining capital cities recorded a range of outcomes from small value increases to moderate declines, the data from the CoreLogic RP index shows. Overall prices increased by 0.2% to take capital city home values 1.6% higher over the first quarter of 2016. The quarterly increase in home values was broad based across the nation’s capitals, with Perth seeing a fall of 0.9% and Brisbane a fall of 0.1%. They were the only two cities to record negative movements in dwelling values over the past three months. ‘The March quarter rise in capital city dwelling values is in stark contrast to the first quarter of 2015, when values increased by 3% which is almost double the current pace of quarterly growth,’ said CoreLogic RP Data head of research Tim Lawless. ‘However, compared with the final quarter of 2015 when capital city dwelling values were down 1.4% the housing market has shown a modest rebound in growth which is well below the strong capital gains recorded over the first half of 2015,’ he explained. But he added that the annual pace of home value appreciation across Australia’s capital cities highlights the slowing growth trend and year on year growth across the capital cities has now reached its lowest point in 31 months, with values up by 6.4% over the past 12 months. Furthermore, no Australian capital city has recorded an annual growth rate in the double digits over the past year. Melbourne has seen the strongest annual growth, with values up by 9.8% over the past 12 months. ‘The housing market has been losing momentum since July last year, when capital city dwelling values were increasing at the annual rate of 11.1%,’ Lawless pointed out. Overall the median price across the capital cities is now $550,000, a rise of 0.2% month on month, up 1.6% quarter on quarter and 6.4% year on year. A breakdown of the data shows that the median price in Sydney is $730,000, up 1% month on month, 2% quarter on quarter and 7.4% year on year while in Melbourne it is $560,000, down 0.6% month on month, up 2.2% quarter on quarter and 9.8% year on year. In Brisbane the median price is $470,000, down 1.2% on a monthly basis, down 0.1% quarter on quarter but up 4.5% year on year while in Adelaide the median is $415,000 with a 0.5% monthly rise, 2.4% growth quarter on quarter and up 3.2% year on year. In Perth the market is actually recovering with a median price of $495,000 which is up 1.2% month on month but down 0.9% quarter on quarter and own 2% year on year with Darwin seeing a similar picture with a median price of $505,000 which is up 2.1% month on month and 2.4% quarter on quarter but down 1.8% year on year. In Hobart the… Continue reading
First time buyers in the UK are failing to count the cost of home ownership
First time buyers in the UK are failing to count the true cost of purchasing a home with legal fees and insurance catching them off guard, new research suggests. Some 40.6% of new home owners don’t take unexpected fees into account and bank transfers, searches and mortgage set up costs were among the biggest shocks for one on four buyers. The research from Pegasus Personal Finance also found that 24.3% weren’t aware of land registry fees, 16.7% unaware of stamp duty and 14.7% not knowledgeable on solicitors’ fees while one in 10 admitted a lack of knowledge on interest rates. Some 13.5% of home owners, assumed to be those with variable rate mortgages, admitted they haven’t prepared for an increase in interest rates should they unexpectedly climb from a seven year low of 0.5%. The firm points out that excluding stamp duty, unforeseen fees could amount to a sizeable £1,850 according to recent data from the Money Advice Service. On top of this one in five did not account for an increase in utility bills as a result of moving to a larger property, while the same number were surprised to see their car insurance costs increase. And 24.6% underestimated removal charges while 13.9% viewed furniture and decor as a surprise expense. ‘The results of this study showed some real eye opening insights and surprisingly displayed a lack of thorough understanding when it comes to the cost of buying a property,’ said Jonathan Le Roux, director of Pegasus Personal Finance. ‘When buyers are working out their budget for a future home move, forgetting the significant costs associated with stamp duty, solicitors fees or similar can really put a spanner in the works at the last minute,’ he explained. ‘Our advice is to do your research and carefully list all the associated costs so you go into home ownership with your eyes wide open. It may be tedious but completing this homework is essential to everything going smoothly,’ he added. Continue reading
First UK house price estimates published ahead of new national index in June
The first estimates for the new single official UK House Price Index which will be first published in its entirety in June 2016, have been published. The new improved index has been developed jointly with other official producers of house price statistics following a review by the National Statistician, uses data from, amongst others, the Land Registry and Council of Mortgage Lenders. By using these comprehensive datasets together, as well as by employing the best internationally agreed methods, the new UK HPI aims to give the best and most detailed picture of the UK housing market. For the most recent period, December 2011, the new UK HPI shows an average price level of £185,000 for England and Wales. This is lower than the price recorded by the current Office of National Statistics index for England at £222,000 for the same period. But it is above the equivalent price levels recorded by the Land Registry for England and Wales at £157,000, the Halifax for the UK at £157,000 and Nationwide for the UK at £163,000. The main reason for the decrease in price levels from the ONS index to the new UK index is the use of the geometric mean, which reduces the impact of very high value properties on the headline data. Over the period from 2003 to 2011, which is the longest comparable period available, the average annual growth is 5.2% for the ONS index for England, 4.6% for the Land Registry index for England and Wales, 4.7% for the Halifax for the UK, 5.3% for Nationwide for the UK and 6.1% for the new UK index for England and Wales. The inclusion of cash sales and improved weights are both contributing to the increased growth seen in the new UK index, according to ONS statistician Chris Jenkins. ‘By combing different data sets and using the best internationally agreed methods, the new UK HPI will give the best possible picture of the changing UK property market,’ he explained. ‘For the first time, consistent high quality data will be available for both national and local areas, helping policy makers to make better decisions,’ he added. Continue reading
