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Canadian property prices up 2.5% year on year, excluding Vancouver and Toronto
National home sales rose by 1.8% from September to October in Canada while prices were up 6.7% year on year, according to the latest index from the Canadian Real Estate Association (CREA). Actual, not seasonally adjusted, activity was little changed with growth of 0.1% compared to October 2014 while the number of newly listed homes was up 0.9% and CREA says that the Canadian housing market remains balanced overall. The data also shows that the national average sale price rose 8.3% year on year but excluding Greater Vancouver and Greater Toronto, it increased by 2.5%. There was an even split between the number of markets where sales posted a monthly increase and those where sales declined. The national increase was driven by monthly sales gains in the Lower Mainland of British Columbia together with the Greater Toronto Area (GTA) and surrounding areas, led by the York Region, Central Toronto, and Hamilton-Burlington. ‘The continuation of low interest rates is supporting home sales activity. Even so, the strength of sales activity varies by location and price segment across Canada,’ said CREA president Pauline Aunger. October extended resale housing market trends of recent months, according to Gregory Klump, CREA’s chief economist. He pointed out that single detached homes continue to be in short supply while demand for them remains strong in a number of active and populous housing markets in British Columbia and Ontario. Meanwhile, an ample supply of condo apartments remains. ‘The balance between supply and demand is generally tighter for single detached homes than it is for condo apartments and that’s unlikely to change any time soon. For that reason, price gains for single detached homes should continue to outstrip those for condo apartment units for some time,’ added Klump. Actual sales were up from year ago levels in half of all local markets, led by the Lower Mainland region of British Columbia, the GTA and Montreal. Gains there were largely offset by a drop in activity in the Calgary region, where sales were down considerably from the record set last year for transactions during the month of October. Year on year price growth slowed in in October for one and two storey single family homes, but picked up for townhouse/row and apartment units. Two storey single family homes continue to post the biggest year on year price gains with growth of 8.67% followed by one storey single family homes up 6.02%, townhouse/row units up 4.88% and apartment units up 4.39%. Year on year price growth varied among housing markets tracked by the index. Greater Vancouver was up 15.33% and Greater Toronto was up 10.33% and continue to post double digit year on year price increases. Meanwhile, price gains in the Fraser Valley increased by 10.51%. By comparison, Victoria and Vancouver Island prices saw year on year gains that ranged between 5% and 7% in October. Prices in Calgary edged down by 1% year on year and prices in Saskatoon were down 1.5%. Prices… Continue reading
Prime central London sales down 14% year on year
Sales levels across the prime central London property market have fallen by 14% year on year from the third quarter of 2014 but the rate of change is slowing, according to a new report. The regular analysis report from W.A. Ellis points out that the annual rate of change is an improvement from the first quarter when transactions were falling at an annual rate 27%. It also shows that the average price paid per square foot across the prime central London sector now sits at £1,832 up by 1.4% over the third quarter of 2014. However, the very top of the market over £5 million has already witnessed the greatest correction in prices with flats and houses being sold for 11.5% less per square foot than in the third quarter of 2014. ‘It would appear that the bubble may already have burst in prime central London but the effect is not as decimating as reports from UBS and Deutsche bank suggest. The government’s intervention in December 2014 by raising Stamp Duty has indeed cooled the very top of the market and the continuous upward spiral has been halted,’ said Richard Barber, the firm’s director. He pointed out that 36% of all properties currently on the market across the sector are now being marketed at a lower price than they were originally listed at, with the average reduction in price being 8.5% of the original asking price. ‘Continuous capital growth in any market is an unrealistic expectation. However, we believe that the correction has already happened and the above statistics bear this out. Whilst there continues to be pessimistic outlooks on the market supported by strong economic arguments, market activity suggests a different story,’ Barber explained. ‘Affordability will undoubtedly remain the key issue within prime central London but news that the population of the UK is likely to grow by 4.4 million in the next 10 years, will undoubtedly impact on both the letting and sales market. This unprecedented level of population growth will prove to be a continuing factor within the supply and demand chain’ he added. Meanwhile, in the lettings sector the report says that the short term outlook for the rental market is looking positive as supply continues to outgrow demand over the next few years. Across Greater London, the firm predicts rental values will increase by 5% in the next year and by 21.7% over the next five years to the end of 2020. Within prime central London, the firm predicts a rise of 3.5% over the coming year, with a slightly more modest prediction of 15.9% over the next five years, which Lucy Morton, head of residential agency at JLL Kensington says still represents a very healthy growth in rental values. ‘This outlook is particularly pleasing given that rental growth over the past two to three years has been minimal… Continue reading
UK govt to crackdown further on rogue landlords
A new £5 million fund for councils is being made available by the UK government to stop rogue landlords who let out substandard homes and make tenants’ lives a misery, it has been announced. The worst affected councils which have a large proportion of private rented stock in their areas and significant problems will be able to bid for a share of the fund to tackle irresponsible landlords who provide unsafe living conditions, exploit innocent tenants and blight communities. The fund will also target ‘beds in sheds’ which are often rented to vulnerable migrants by ruthless landlords who charge them extortionate rents to live in cramped conditions. Councils can use the money to increase inspections of property, carry out more raids, initiate more enforcement action and prosecutions, and demolish sheds and buildings that are prohibited. ‘We’re determined to keep the country building and increase the supply of good quality homes that families want, both to buy and for rent. Key to this is rooting out the minority of landlords in the private rented sector that let out poorly maintained and unsafe properties to vulnerable tenants, making their lives a misery,’ said Communities Secretary Greg Clark. ‘Council led efforts mean more than 3,000 landlords have faced enforcement action and even prosecution in the last two years. This £5 million funding, combined with the extra powers we’re bringing forward, will help them go even further,’ he added. Housing Minister Brandon Lewis pointed out that while the majority of tenants are happy with their home, the private rental sector is still afflicted by too many rogues who rent dangerous, dirty and overcrowded properties without a thought for the welfare of their tenants. ‘That’s why we are inviting the worst affected councils to come forward and apply for extra funding, so they can root out the cowboys and rogue operators. The government is determined to crack down on rogue landlords and this funding, alongside measures in the Housing and Planning Bill, will further strengthen councils’ powers to tackle poor quality privately rented homes in their area,’ he explained. There are more than 4.4 million households renting privately and since 2013 nearly 40,000 inspections have taken place in properties, with more than 3,000 landlords now facing further enforcement action or prosecution. ‘The measures will not hamper the vast majority of landlords who are diligent and responsible. They avoid strangling the industry in red tape which would deter investment, increase rent and reduce choice for tenants,’ added Lewis. Additional measures being taken forward in the Housing and Planning Bill include seeking banning orders for the most prolific and serious rogue landlords, issuing penalty notices of up to £5,000 for breaches, a new process for abandoned tenancies, which would allow a landlord to recover the home without the need to go to court and creating a database of rogue landlords and letting agents. According to Landlord Action, which has been part of Government think tank on buy to let legislation, is backing… Continue reading
