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New Zealand sees highest volume of house sales for month of March since 2007
Residential property sales in New Zealand in March were up 27.6% in March and 20.3% compared to a year ago, according to the latest index from the Real Estate Institute of New Zealand. This the highest March sales volume since 2007 and prices are also going upwards with the national median price for March $475,000, an increase of $35,000 or 8% compared to March 2014 and an increase of $45,000 or 10.5% from February. However, it is clear that a strong market in Auckland is leading the growth. Excluding the impact of the Auckland region, the national median price was flat compared to February at $350,000 and $5,000 or 1.4% higher compared to March 2014. ‘March is the strongest sales month of the year, with almost 1,400 more sales than for any of the past 12 months. While the increase in the number of sales is more or less spread across the country, the movement in the national median price is almost entirely an Auckland effect,’ said REINZ chief executive Colleen Milne. ‘Auckland has posted a record number of auction sales in March, with almost one in two sales by auction. Our data shows that on a suburb by suburb basis auctions sell for a premium compared to other sales,’ she pointed out. ‘We also see in the data a noticeable spike in the number of sales over $1 million in Auckland. These two effects explain, at least in part, the jump in the national median and Auckland median prices for March, although the underlying demand pressures remain and supply continues to be restrained by low numbers of new listings,’ she explained. ‘Across the rest of the country, sales volumes and median prices are far better balanced, with a number of regions reporting good sales numbers, good listings and plenty of activity. The national median price, excluding Auckland, has remained at $350,000 for the past two months, indicating that supply and demand are far more balanced outside of Auckland,’ she added. All regions apart from Central Otago Lakes recorded an increase in sales volume compared to February, with Auckland recording the largest of 56%, followed by Taranaki with 50% and Southland with 39%. In comparison with March 2014, all regions recorded increases in sales volume, with Waikato/Bay of Plenty recording the largest, of 41%, followed by Central Otago Lakes with 27% and Hawkes Bay and Manawatu/Wanganui with 23% each. Central Otago Lakes recorded the largest percentage increase in median price compared to March 2014, at 21%, followed by Auckland at 13.0% and Taranaki at 11%. Compared to February, Central Otago Lakes recorded the largest percentage increase from February, at 13%, followed by Auckland at 7% and Canterbury/Westland at 3%. The REINZ Stratified Housing Price Index, which adjusts for some of the variations in the mix that can affect the median price, is 9.5% higher than in March 2014, at 4,340.9. The Auckland Index rose 20% compared to March 2014, the Christchurch Index 5% and… Continue reading
Asking prices rise across the UK apart from in Scotland
Asking prices have increased across England and Wales but not in Scotland, according to the latest index to be published. Prices rises increased by 0.9% overall in England and Wales during the last month but the average annual appreciation for England and Wales is down to 6.5%, the Home.co.uk index shows. The firm says that this reflects increasing demand across most of the UK and although Scottish prices nudged down slightly they remain 4.1% higher than last year. The data also shows that the typical time on market for England and Wales has improved considerably. At 88 days, this already matches last year's post-crisis low and looks set to fall further despite the slower Greater London market. Supply of property for sale in London has risen considerably over the course of the last year, up19%. Correspondingly, marketing times have increased and the typical marketing time is now 60 days which is 13 days longer than in April 2014. Despite this, prices continue to rise at a rate of 13% per annum. Supply rises in other regions are either small or negligible and this is stimulating great price growth, the index report says. Prices are higher in East England, where the typical time on market has fallen to a new post-crisis low of 64 days. East England, the South East, West Midlands and the South West all showed higher monthly price rises than Greater London this month. Further north, marketing times are also improving and prices are nudging up as spring increases the market momentum. Overall, the current mix-adjusted average asking price for England and Wales shows that properties on the market are valued 6.5% higher than they were in April 2014. Homes might be taking longer to sell this year than last, but London’s property values have soared to new all-time highs and this month’s rise takes the average home to over £500,000. Also, the mix adjusted average price has risen by 44% in just three years, which equates to an increase of around £150,000. However, the market dynamic in London is changing and the same vigour that yielded such price growth is moving out to the regions via the Home Counties, according to Doug Shephard, Home.co.uk director. ‘The immediate future looks rosy for all of the UK, but much of this growth is based on debt at historic low rates of interest. And the music won’t stop until it appears that the debt cannot be repaid, although that moment seems a long way off,’ he said. ‘Leveraged property investors can take comfort in the fact that the Bank of England doesn’t look keen on increasing interest rates any time soon. In fact, inflation is falling to new lows and the Bank ‘stands ready’ to cut IRs should this deflationary trend continue for too long. So, for the time being, the sky’s the limit,’ he added. Continue reading
Property rents in UK over 10% higher than a year ago
Residential rents across the UK are 10.2% higher than a year ago and have increased in 11 out of 12 regional in the first quarter of 2015 compared to the same period in 2014. The average rent on a tenancy signed in the UK during the first quarter of 2015 was £902, compared to £819 for tenancies signed during the first quarter of 2014. Rents are higher in every region of the UK except Wales compared to a year ago. The date from the latest HomeLet rental index also shows that the average rent in Greater London is now £1,427 and rental growth is highest in the south west of England with prices 13.7% higher than a year ago at £851 per month. Excluding Greater London from the findings, average rents across the rest of the UK are 6.7% higher than a year ago, which is the highest rate of annual growth recorded by the HomeLet Rental Index since its inception in 2008. The HomeLet Rental Index figures for the first three months of 2015 have seen steady growth in rent prices with 10 out of 12 UK regions showing price rises compared to the previous month. Figures for the three months to March 2015 show an average UK rent growth of 1.5 per cent when compared to the three months to February 2015. The figures also show that the annual growth of rent prices in the Greater London rental market and the rest of the UK are continuing to converge. While rents on new tenancies spiked up sharply during 2014, the pace of growth has been more modest during the first three months of the year. By contrast, rents beyond the capital have been rising more quickly. ‘With average rents for new tenancies across the UK now more than 10% higher than a year ago, what we are seeing is a market that is experiencing sustained demand from increasing numbers of people requiring privately rented property,’ said Martin Totty, chief executive officer of the Barbon Insurance Group, parent company of HomeLet. ‘However, rent price growth in London is no longer outpacing that of the rest of the UK. The HomeLet Rental Index shows that during the first three months of 2015, rents on new tenancies in six regions of the UK rose more quickly than Greater London,’ he explained. ‘#Demand for rental property in London remains high, but rent price growth in many regions outside of the capital has matched or exceeded London over the past three months,’ he added. Continue reading
