Tag Archives: australia
House prices growth flattens in Sydney, latest index shows
House price growth in Sydney has flattened and values in three other Australian capital cities fell in September, according to the latest residential index. Overall there was a 0.9% rise in capital city property prices over the month and a 4% rise in the September quarter, the CoreLogic RP Data home value index shows. However, across the capital cities, the month on month results ranged from a 2.4% rise in Melbourne to a 1.9% fall in Hobart while Sydney, posted a month on month gain of just 0.1% in September. During the September quarter, half of Australia’s capital cities posted a decline in dwelling values with Hobart down 2% over the three months. In Adelaide values slipped by 1.6%, in Perth they fell by 0.7% and Canberra values were down 0.4%. The most substantial capital gains over the quarter were achieved in Melbourne where dwelling values were up by 7.4% followed by Sydney at 4.6 %, Brisbane at 1.9% and Darwin up by 0.4%. Head of research Tim Lawless pointed out that the flat growth rate in Sydney comes after dwelling values increased by 16.7% over the past 12 months and they are 49.6% higher over the growth cycle to date. ‘The slower month on month reading across the Sydney market comes at a time when auction clearance rates have slipped to the low 70% range from week to week and the number of advertised properties has risen,’ said Lawless. ‘Vendors are still enjoying strong selling conditions, but it looks like buyers are slowly regaining some leverage in what has been a very hot market. Meanwhile, while half of Australia’s capital cities have seen values rise over the past quarter and year, the other half did not fare as well,’ he added. In Darwin, dwelling values fell by 3.9% over the 12 months to the end of September, while in Perth values were 0.9% lower over the year. Adelaide home values dropped by 0.3% and Hobart values are 0.2% lower. Weakening labour markets, slower population growth and less demand for housing is placing downwards pressure on prices to differing degrees across these markets, according to Lawless. Looking at which sector of the housing market is driving the highest capital gains, across the combined capital cities it has been the most expensive quartile of the market where growth has been the most substantial. Across the combined capitals, the top quartile of dwellings based on value has recorded growth of 12.3% over the past 12 months, while the most affordable end of the market has recorded a lower growth rate of 8.5%. ‘This trend holds true across Sydney and Melbourne, however in Brisbane, Adelaide and Perth it is actually the most affordable end of the housing market that has recorded the best results,’ Lawless said. CoreLogic's analysis of houses versus apartments reveals some substantial differences in market performances across the capital cities. At a capital city level over the quarter, the results don’t show a great deal of difference with… Continue reading
Retired UK home owners seeing value of property grow
Retired home owners in the UK have seen their property wealth grow by nearly £17.5 billion in the past three months as house prices continue to climb, new research shows. Pensioners who own their homes outright have gained an average of £3,725 each from their houses in the past three months taking their property wealth to a new record high, according to the index from over 55s financial specialist Key Retirement. In the five years since Key started monitoring the housing wealth of the over 65s, in January 2010, total pensioner property wealth has increased by 14% or £111 billion which equates to £23,700 on average for every home owner. The Pensioner Property Index shows over 65 home owners now own property wealth of £891.249 billion outright with pensioners across almost all of the UK benefiting. Key believes the strong growth in property prices will drive expansion of the equity release market further which enables homeowners to release wealth from their homes. Customers releasing property wealth are taking around £68,500 on average, its figures show. Retired home owners in London were the biggest winners gaining an average of around £14,238 each in the past three months, while home owners in the South East of England are more than £8,290 better off and pensioners in East Anglia are £8,524 better off. Key’s figures show a fifth of all pensioner property equity is owned by over 65s in London with total wealth of £178.894 billion. Nearly two thirds of pensioner property wealth is concentrated in London, the South East, the South West and East Anglia. ‘The strength of the housing market is reflected in the growth in the amounts being released through equity release plans which are now an average £68,500, an amount which dwarfs the average pension pot in the UK,’ said Dean Mirfin, technical director at Key Retirement. ‘The success of property investment for millions of over 65s home owners highlights how homes are major assets which should be considered as part of anyone’s retirement planning,’ he explained. ‘Property prices rise and fall but over 65 home owners control more than £891 billion in assets which can make a major contribution to enhancing retirement lifestyles. Pensioners however need specialist advice before accessing their property wealth,’ he added. Continue reading
US existing home sales fall after three months of growth
Following three straight months of gains, existing home sales in the United States dipped in August despite slowing price growth and a positive turnaround in the share of sales to first time buyers. Total existing home sales, which are completed transactions that include single family homes, town homes, condominiums and co–ops, fell 4.8% to a seasonally adjusted annual rate of 5.31 million in August from a slight downward revision of 5.58 million in July. While none of the four major regions saw sales increase in August, the index report from the National Association of Realtors (NAR) says that sales have risen year on year for 11 consecutive months and are 6.2 % above a year ago. Lawrence Yun, NAR chief economist, explained that home sales in August lost some momentum to close out the summer. ‘Sales activity was down in many parts of the country last month, especially in the South and West, as the persistent summer theme of tight inventory levels likely deterred some buyers,’ he said. ‘The good news for the housing market is that price appreciation the last two months has started to moderate from the unhealthier rate of growth seen earlier this year,’ he added. The index also shows that the median existing home price for all housing types in August was $228,700, which is 4.7% above August 2014 when it was $218,400. The market has now seen 42 months in a row of year on year gains. The report also shows that total housing inventory at the end of August rose 1.3% to 2.29 million existing homes available for sale, but is 1.7% lower than a year ago. Unsold inventory is at a 5.2 month supply at the current sales pace, up from 4.9 months in July. ‘With sales and overall demand higher than a year ago and supply mostly unchanged, low inventories will likely continue to limit options for those looking to buy this fall even with the overall pool of buyers shrinking because of seasonal factors,’ said Yun. The percent share of first time buyers rebounded to 32% in August, up from 28% in July and matching the highest share of the year set in May. A year ago, first time buyers represented 29% of all buyers. Yun believe that when the Federal Reserve decides to lift short term rates, which is expected later this year, the impact on mortgage rates and overall housing demand will likely not be pronounced. ‘With job growth holding steady, prospective buyers can handle any gradual rise in mortgage rates, especially if today's stronger labour market finally leads to a boost in wages and homebuilding accelerates to alleviate supply shortages and slow price growth in some markets,’ he added. NAR released a study earlier this month that examined new home construction in relation to job gains. The findings revealed that home building activity is currently insufficient in a majority of metro areas and is contributing to the ongoing housing shortages and unhealthy… Continue reading
