Tag Archives: australia
Million dollar sales push up Auckland’s average house price in September
The average price of homes sold in Auckland, New Zealand, reached a record high last month, according to the latest published figures. There are signs that prices and sales activity in the Auckland residential housing market will lift after the forthcoming general election, says agents Barfoot & Thompson. This comes as the average house sales price in the city reached £738,876, the highest on record, some $13,000 up on the previous highest average price established in March this year, and up 3.8% on the previous month’s average price. ‘The sales data shows the high average price was the result of a relatively modest number of homes being sold, of which a high number sold for in excess of $1 million. Of the 959 homes sold, 164 or 17.1% were for in excess of $1 million,’ said Peter Thompson, managing director of Barfoot & Thompson. ‘Properties in the higher price range are less affected by the uncertainties that exist during a run in to a general election, and with such a high number of sales at the high end, the average price has lifted more than might be the case in a normal month’s trading,’ he added. He pointed out that in contrast, September’s median price at $635,000, is up less than 1% on that for August, and is more in line with the median price over the past four months. ‘Without doubt, the election’s influence can be seen in September’s sales numbers. However, what can also be seen in the month’s figures is that housing activity was starting to lift during September, and normal spring trading can be expected now the election is behind us,’ said Thompson. The data also shows that new listings, at 1,314 for the month, were already starting to build and were up 16.4% on listings during August and only 5.9% down on July’s 1,396 new listings. ‘One factor which has the potential to put pressure on sales prices in the short term is the low number of listings at month end. At 3,075 listings, this is the lowest number this year and the lowest at the end of a September for more than a decade, and means that at the start of the month choice is extremely limited,’ explained Thompson. He said it may take another month for the new listing pipeline to build and added that sales of property for under $500,000 held up during September, accounting for 30.1% of all sales. Continue reading
Canadian prices expected to rise 5.9% this year but only 0.7% in 2015
The national average home price in Canada is now projected to rise by 5.9% to $405,000 in 2014 and a further 0.7% in 2015, according to the latest forecast. The Canadian Real Estate Association is also predicting similar price gains in British Columbia, Alberta, and Ontario while increases of just below 3% are forecast for Saskatchewan, Manitoba and Prince Edward Island. Newfoundland and Labrador is forecast to see average home price rise by about 1% this year, while Quebec is forecast to see an increase half that size. Prices are forecast to be flat in New Brunswick and fall by almost 2% in Nova Scotia. Alberta and Manitoba are forecast to post average price gains of almost 2% in 2015, followed closely followed by Ontario at 1.3%. Average prices in other provinces are forecast to remain stable, edging up by less than 1%. The CREA outlook report points out that an extraordinarily bleak winter delayed the start to the spring home buying season earlier this year. This deferral boosted activity in May and June as properties were snapped up after finally hitting the market, particularly in markets with a shortage of listings. Although this boost was and still is expected to be transitory, sales have yet to show signs of cooling as activity strengthened slightly further over the summer. The increase reflects continuing strength in home sales among large urban markets that initially drove the spring rebound together with gains in markets where activity had previously struggled to gain traction. Lowered mortgage interest rates supported this trend. Sales are now forecast to reach 475,000 units in 2014, representing an increase of 3.8% compared to 2013. This is upwardly revised from CREA’s forecast of 463,400 sales published in June, and reflects stronger than expected sales in recent months. Even so, sales activity is expected to peak in the third quarter as the impact of a deferred spring dissipates and continuing home price increases erode housing affordability. This would place activity in 2014 slightly above but still broadly in line with its 10 year average. Despite periods of monthly volatility since the recession of 2008/2009, annual activity has remained stable within a fairly narrow range around its 10 year average. This stability contrasts sharply to the rapid growth in sales in the early 2000s prior to the recession. British Columbia is forecast to post the largest year on year increase in activity at 11.9% followed closely by Alberta at 7.7%. Demand in both of these provinces is currently running at multi-year highs. Activity in Saskatchewan, Manitoba, Ontario, Quebec and New Brunswick is expected to come in roughly in line with 2013 levels, with sales increases ranging between 1% and 2% in the first three provinces and edging lower by about 1% lower sales in the latter two provinces. Continue reading
Annual UK residential valuation activity cooled last month, latest research shows
UK housing market valuation activity increased 13% on a monthly basis in August but down 4% compared with a year ago, according to the latest analysis. One reason it is still quieter than a year ago could partly be due to August 2013 being a particularly strong month. John Bagshaw, corporate services director of Connells Survey & Valuation said it was the first time where it was clear the property market was moving into sustained positive territory. ‘Since last summer progress for the housing market is on a new, steadier, and more sustainable track. It’s worth remembering, activity is now up 5% compared to August 2007, so hardly a poor base for future progress,’ he explained. ‘Moreover, initial signs are positive for September and barring unforeseen financial wobbles the housing market is set for solid and sustainable progress through the autumn and into the New Year,’ he added. The firm’s report also shows that first time buyers still represent the largest sub-section of activity, with new buyers representing a 30% proportion of all valuations in August. Compared to July, first time buyer activity increased by 8%. However, a year-on-year fall of 4% in the number of valuations for first time buyers is in line with the drop in total valuations activity compared to August 2013. Home movers already on the property ladder fared better than first time home-buyers in August, in contrast to previous trends. Valuations on behalf of home movers numbered 18% more in August than in July. On an annual basis home mover activity is also in line with an overall fall of 4% since August 2013. ‘Since the recession, those further up the ladder have been more content to stay put in their homes, to stick with the asset they have. Such a strong showing from home movers looking to up-size is a positive sign for sentiment in the rest of the housing market. Meanwhile, first time buyer activity has bounced back well from a particularly strong summer slowdown,’ Bagshaw pointed out. By contrast, remortgaging activity has fallen most sharply on an annual basis, down 5% compared to August 2013. This is despite an 8% increase in the number of remortgaging valuations on a monthly basis, compared to July 2014. ‘Remortgaging is certainly still on the agenda and still makes financial sense for plenty of households. This has just been on the back burner a little over the summer period, when people have other things to think about,’ said Bagshaw. ‘With the return from holidays, and as the back to school mood sets in, house holders may start to reconsider their monthly finances. The long term trend is clear, a higher base rate is on the way. The cheapest mortgage deals are only set to become rarer over coming years, so in the medium term remortgaging activity will reflect that,’ he added. Buy to let… Continue reading
