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Miami real estate market goes from strength to strength, latest data shows
The real estate market in Miami, one of the most popular US locations for overseas buyers, is going from strength to strength with properties selling fast and prices increasing. October marked more than four years of consistent monthly median sales price increases for both single family homes and condominiums, according to the latest data from the Miami Association of Realtors. The data also shows that the median sales price for single family homes increased by 10.4% year on year from $240,000 to $265,000. However, single family home and condominium prices remain at 2004 levels despite four years of consistent year on year increases. The median sales price for existing condominiums increased 8.1% in October to $200,000 from $185,000 a year ago. Miami-Dade County condo prices have risen in 52 of the last 53 months, a period stretching nearly four and a half years. ‘Miami real estate continues to attract international buyers from all over the world as well as a growing number of domestic consumers,’ said Christopher Zoller, the association’s residential president. ‘South Florida offers world class amenities, a top-tier arts and cultural epicentre, a diversified economy and more. The strong demand is leading to fewer days on the market for Miami single family homes while buyer offers are near asking price,’ he added. The average percent of original list price received for single family homes was 95.6% in October 2015, an increase of 0.3% from a year earlier. The median number of days on the market for Miami single family homes decreased 7% to 40 days in October 2015 from 43 days in October 2014. The median number of days on the market for condominiums sold in October 2015 was 59 days, a 1.7% increase from 58 days in October 2014. The average percent of original list price received was 93.8%, a 0.1% year on year increase. Total existing Miami-Dade County residential sales, including single family and condominiums, were consistent with historical averages despite experiencing a slight decline of 5.6%, from 2,712 sales in October 2014 to 2,559 last month. Single family home sales decreased by 4.4% year on year in October, from 1,204 to 1,151. Existing condominiums, which are competing with a significant rise in supply of new construction properties east of Interstate-95, had 6.6% fewer sales in October, decreasing from 1,508 to 1,408. The report points out that in addition to increased sales of new construction properties, Miami existing condominiums have been impacted by a lack of access to mortgage loans. Of the 8,523 condominium buildings in Miami-Dade and Broward Counties, only 23 are approved for Federal Housing Administration loans, down from 29 earlier this year, according to statistics released earlier this year from the Florida Department of Business and Professional Regulation and FHA. It adds that a new FHA policy, however, should qualify more South Florida condo buildings. Earlier this month the FHA announced plans to streamline the condominium recertification process, expand its definition of acceptable owner-occupied units to include second homes… Continue reading
New mortgage market tracker report reveals how many applications are successful
Almost half, 47%, of enquiries to intermediaries about getting a mortgage in the UK resulted in a completion during the third quarter of 2015, according to a new Mortgage Market Tracker report. The quarterly tracker from the Intermediary Mortgage Lenders Association (IMLA) shows how many enquiries result in applications, offers and completions, as well as dropout rates, those attributed to lender declines, and the wider issues of intermediaries’ confidence in the business outlook for the mortgage industry, the intermediary sector and their own firm. The data from this first report also shows that 67% of initial borrower enquiries led to an application, 83% of which then received a lender offer. A similar percentage of offers, 84%, then reached completion. The largest percentage of dropouts occurred during the initial stage, with 33% of borrower enquiries not leading to an application. Intermediaries attributed 27% of all dropouts, equivalent to 14 in every 100 enquiries, to lender declines, with the remaining 73% of dropouts coming from client or broker withdrawals. The largest firms, those with more than 11 employees, and sole traders both outperformed the industry average of 67% converting enquiries into applications, with 70% of consumers progressing through this stage. Once a borrower submitted an application, sole traders achieved the highest rate of offers at 87% compared to an average of 81% and subsequently completions at 88% compared to an average of 84%. However, the smallest firms also reported the highest rate of dropouts due to lender declines at 35%, compared with an industry average of 27% and significantly higher than the decline rates reported by the larger firms. ‘The intermediary channel has never been more important to the UK mortgage market, with consumers and lenders both increasingly relying on brokers to match individual needs to suitable products,’ said Peter Williams, IMLA executive director. ‘Regulatory changes have brought new assessments and criteria to contend with, but this data suggests the majority of applications are getting the green light. It also shows that brokers are playing an invaluable role in the earlier stages by assessing borrowers’ circumstances and providing realistic advice and recommendations,’ he explained. ‘The advantage of a competitive marketplace with a range of mainstream and specialist players is that a decline from one lender does not necessarily mean the end of the road. Rather brokers will work to secure alternative mortgaging opportunities. As this suggests, positive customer outcomes rely on lenders and brokers working together effectively,’ he pointed out. ‘After a period of fundamental change, it is encouraging that intermediaries are upbeat about the business outlook, which bodes well for consumer access to mortgage finance. By tracking the mortgage pipeline, we hope to provide useful data for both lenders and intermediaries to help fine-tune the process and ensure a positive experience for consumers,’ he added. According to Brian Murphy, head of lending at the Mortgage Advice Bureau, brokers… Continue reading
UK lettings agents report fewer rent rises in October
Fewer tenants are experiencing rent increases in the UK with the number of letting agents reporting rent rises falling to a quarter, according to the Association of Residential Letting Agents (ARLA) latest report. This is down from 32% in September meaning that the number of rent hikes in October is the lowest reported this year, the data from the ARLA private rental sector report shows. The data also shows that demand for rental properties dropped in October, alongside supply of available housing, a trend typical of the time of year. ARLA agents registered 33 new tenants on average per branch this month, the lowest amount this year. However, the London rental market bucked this trend. The report found that demand for rental housing in London continued to increase in October with an average of 42 prospective tenants registered per branch, up from 39 in September, an 8% increase. Supply of rental accommodation decreased in line with demand, dropping from 182 properties on average per branch in September, to just 173 in October. However, prospective renters in the East of England and the South West will have better luck finding a property; agents in those regions managed more properties in October than September, with 199 and 184 properties managed respectively. ‘Fewer agents reporting rent increases should bring some relief to tenants before Christmas. It’s definitely a step in the right direction, however a quarter of tenants are unfortunately still seeing hikes,’ said David Cox, ARLA managing director. ‘Although it’s typical that demand dropped at this time of year, as there’s a seasonal lull in the run up to Christmas, we except to pick up again in January,’ he added. Looking ahead to next year, ARLA hopes to see the number of tenants experiencing rent hikes remain low with supply and demand levelling out. ‘However, a lot is resting on the economic and political agenda. We’re still waiting for new houses, promised by the Prime Minister to be built,’ said Cox. ‘Whilst this will take pressure off the rental prices as supply rises, the changes to landlord tax proposed under the Finance Bill is likely to discourage new landlords from entering the market,’ he pointed out. ‘Further, it’s been a waiting game all year to see if Bank of England governor Mark Carney will raise interest rates in the New Year and this will play a big part in determining whether renters looking to buy a home will be able to afford to,’ he explained. ‘And when interest rates do rise, the goal of home ownership will be pushed further out of reach for many and of course put further pressure on the private rental sector,’ he added. Continue reading
