Tag Archives: shows
Low supply results in existing home sales in the United States tumbling by over 7%
Existing home sales in the United States tumbled in February amidst unshakably low supply levels and steadfast price growth in several sections of the country, according to the latest index report. But prices are still increasing with the data showing that the median existing home price for all housing types in February was $210,800, up 4.4% from February 2015. It was the 48th month in a row for price growth. The data from the National Association of Realtors also shows that all four major regions saw sales fall, led by the Northeast and Midwest, with overall transactions down by 7.1%, the index report data shows, but sales are still 2.2% higher than a year ago. ‘Sales took a considerable step back in most of the country last month, and especially in the Northeast and Midwest,’ said Lawrence Yun, NAR chief economist. Yun explained that a lull in contract signings in January from the large East Coast blizzard, along with the slump in the stock market, may have played a role in February's lack of closings. ‘However, the main issue continues to be a supply and affordability problem. Finding the right property at an affordable price is burdening many potential buyers,’ he added. According to Yun, job growth continues to hum along at a robust pace, but there appears to be some uneasiness among households that the economy is losing some steam. This was evident in NAR's latest quarterly which revealed that fewer respondents believe the economy is improving, and a smaller share of renters said that now is a good time to buy a home. ‘The overall demand for buying is still solid entering the busy spring season, but home prices and rents outpacing wages and anxiety about the health of the economy are holding back a segment of would-be buyers,’ Yun pointed out. The data also shows that total housing inventory at the end of February increased 3.3% to 1.88 million existing homes available for sale, but is still 1.1% lower than a year ago. Unsold inventory is at a 4.4 month supply at the current sales pace, up from four months in January. All-cash sales were 25% of transactions in February, down from 26% both in January and a year ago. Individual investors, who account for many cash sales, purchased 18% of homes in February compared to 17% in January, matching the highest share since April 2014 while 64% of investors paid cash in February. ‘Investor sales have trended surprisingly higher in recent months after falling to as low as 12 percent of sales in August 2015. Now that there are fewer distressed homes available, it appears there's been a shift towards investors purchasing lower priced homes and turning them into rentals. Already facing affordability issues, this competition at the entry level market only adds to the roadblocks slowing first time buyers,’ Yun explained. The share of first time buyers fell to 30% in February, matching the lowest share… Continue reading
Top end property prices in Hong Kong set to fall by 15% this year
Stock market volatility and the interest rate rise in the United States has dampened investment sentiment in the property markets in Hong Kong, according to a new report. Overall the luxury sector prices remained broadly steady, with apartment prices on Hong Kong Island and Kowloon recording some mild declines, says the latest briefing report from Savills World Research. In the fourth quarter of 2015 primary sales rebounded after the quiet summer months but secondary sales declined further, and total transaction volumes of 10,000 were the lowest since 2002. The report suggests that prime residential prices are on course to decline by 15% this year, with little positive news expected in the short term. The data shows that sales sale on Hong Kong Island declined by 36% quarter on quarter in the final three months of 2015 while prime apartment prices fell 0.9%. However, there was still a 9.3% price growth over the year as a whole. Mid-Levels, with the highest concentration of primary launches and future supply among all districts, saw prices remain relatively stable in the last quarter of 2015, with an 8% increase overall for the year. Supported by a few house sales on the Peak in the fourth quarter townhouse prices remained stable over the quarter and recorded an 8.3% increase overall in 2015. Luxury transaction volumes in Kowloon and the New Territories also fell heavily by 62% and the report says this was due to a lack of significant new launches over the quarter, with most first-hand transactions coming from the remaining units of projects launched earlier in the year. Luxury prices in Kowloon declined by 1.4% while prices in the New Territories remained largely stable. ‘With investment sentiment dwindling, and few market highlights, many purchasers held off making investment decisions. This, coupled with the increasing number of newly completed luxury units being made available for lease amid declining rents, caused some potential purchasers to switch to the leasing market to avoid uncertainties over the next one to two years,’ the report explains. Mass residential prices declined by 2.9% across the board in the fourth quarter of 2015 and the report says that unlike previous declines in 2012 and 2013 which were in response to various restrictive government measures and thus short lived, the residential market seems to have turned a corner, due to the uncertain economic environment, a further possible rate hike and a potential tightening of funding to reduce capital outflows. In fact, while developers in general achieved satisfactory sales of primary projects in the quarter with 4,606 primary units sold, a 32% increase from the third quarter, this was mainly through providing more incentives, steeper price discounts, or both. The result was that the secondary market was frozen out and the 5,563 secondary transactions recorded, as well as the 10,169 total transactions recorded, were both all-time quarterly lows since 2002. Global economic uncertainties, stock market volatility and fears of further capital outflows from the local banking… Continue reading
Average asking price for a home in England and Wales passes £300,000
The average asking price of a home in England and Wales has surpassed £300,000 for the first time as demand soars and supply remains tight, the latest index figures show. New homes put on the market averaged £303,190 this month, up 1.3% on the previous month and up 7.6% compared to the same month a year ago, according to the data from Rightmove. The property portal’s monthly report says that the challenges facing both first time buyers and those trading up are highlighted by a 50% increase in just 10 years which means that new seller asking prices have increased by £100,000 since March 2006. And the 1.3% price jump in March at £3,903 is the second highest at this time of year since the 2008 credit crunch with the price growth momentum spreading north and west with six out of 10 regions setting record price highs this month. The data also shows that London no longer leads the growth with prices standing still as an average asking value of £644,045 but they are up 11% year on year. ‘While the start of 2016 has seen an encouraging but modest uptick in the number of properties coming to market, demand and momentum have combined to push prices over £300,000,’ said Miles Shipside, Rightmove director and housing market analyst. ‘On average 30,000 properties have come to market each week over the past month, up by 3% on this time last year, but there are insufficient numbers of newly listed properties in many parts of the country to meet demand,’ he explained. ‘The rebound from the housing market downturn has been driven by underlying demand, greater availability mortgage lending, and the economic recovery. The release of this pent-up demand and the shortfall in housing supply are resulting in insufficient availability of affordable stock in many locations,’ he pointed out. Shipside said that the result is that more first time buyers and would-be trader uppers are finding themselves ill-equipped to cope with current house prices given the tighter lending criteria and average earnings lagging well behind house price growth. A breakdown of the figures shows that asking prices monthly growth was led by the South West taking the average to £292,251 and up 6.8% year on year, followed by the West Midlands with monthly growth of 2.5% to £204,140 and annual growth of 5.5%. This was followed closely by the North East with monthly growth of 2.4% to £148,484 and annual growth of £3.7% while Yorkshire and Humber saw month on month growth of 1.9% to £173,947 and year on year growth of 3.2%. The South East saw monthly growth of 1.8% to £399,680 and annual growth of 8.1%, the East of England monthly growth of 1.6% and annual growth of 9.7% to an average of £326,836 and the East Midlands and Wales both saw monthly growth of 1.4% taking the average asking price to £189,819 and £174,046 respectively. Shipside pointed out that three out of the top four… Continue reading
