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Average prices in England and Wales up over 6% year on year
Average property prices in England and Wales increased year on year by 6.4% in December, taking the average property value to £188,270, the latest index shows. Month on month house prices rose by 1.2% since November 2015, according to the monthly index report from the Land Registry. London recorded the greatest increase in its average property values with annual growth of 12.4% and the biggest month on month rise at 2.1%, taking the average price to £514,097. The North East saw the lowest annual price growth with an increase of 0.8%, taking the average price to £99,069, a considerable difference to the average price in London. Wales saw the most significant monthly price fall with a decrease of 0.8% to take the average price to £121,780. The most up to date figures available, show that the number of completed house sales in England and Wales fell by 8% to 79,960 compared with 86,452 in in October 2014 while the number of properties sold for more than £1 million fell by 2% to 1,231 from 1,258 a year earlier. Repossessions in England and Wales fell by 51% to 431 compared with 888 in October 2014 and the region with the greatest fall in the number of repossession sales was London with a fall of 71% from October 2014. Mark Posniak, managing director at Dragonfly Property Finance, pointed out that with demand strong and supply weak, prices in December defied the usual seasonal slowdown, adding that this is even more pronounced in London. He believes that the construction lag is having a significant impact on the market. ‘On a more positive note, we are seeing noticeably more construction activity at the moment, particularly by smaller developers. But this will take time to trickle through into the market,’ he said. ‘Looking into 2016, it's hard to see anything other than a continuation of the current trend of steadily rising prices, especially with interest rates unlikely to rise in the near future and a robust jobs market,’ he added. According to John Eastgate, sales and marketing director of OneSavings Bank, prolific buyer demand is fanning the house price growth. ‘A strengthening labour market, robust consumer sentiment and a supportive mortgage market all played their part, despite the obstacles provided by the festive period. This strength of demand has been compounded by the record low levels of property on the market at present,’ he said. ‘Uncertainty around economic growth in 2016 provides a reason for caution. The good news however, is that house building starts appear to be at their highest level since 2007. It is not yet strong enough to counterbalance demand. However if this trend of improvement is maintained, it should lead to a healthier property market for investors and buyers alike,’ he added. The lack of supply is also the explanation of what is currently happening with unseasonal growth in the market, said Jonathan Hopper, managing director of the buying agents Garrington Property Finders. ‘Even… Continue reading
Housing market confidence remains strong in the UK, latest sentiment index shows
Confidence in the UK housing market remains strong and the majority believe that property prices will be higher rather than lower in 12 months’ time. There has also been a small rise in positive selling sentiment in the final quarter of 2015 and a fall in the number who expect it to be a bad time to sell, according to the latest quarterly Halifax Housing Market Confidence Tracker index report. Despite declining steadily since last May, house price optimism in the final quarter of 2015 continued to show that a majority, +61 compared to +68 in May, think prices will keep rising with 13% believing they will be at least 10% higher. ‘Solid economic growth, rising real earnings and falls in already very low mortgage rates are all stimulating housing. At the same time, there is an increasingly acute imbalance between supply and demand, which is causing property prices to rise at a robust pace,’ said Craig McKinlay, Halifax mortgages director. ‘This situation, which is unlikely to reverse significantly in the short term, is reflected in the public’s continuing high levels of optimism regarding house price growth over the coming 12 months,’ he added. There has been a small rise in positive selling sentiment since last quarter, with 55% (+3) of people thinking the next 12 months will be a good time to sell. By contrast, there has been a drop in the proportion who expect it to be a bad time to sell, down three points in the same period, to 29% now. Positive buying sentiment has increased marginally, at 54% (+1), with negativity down two points to 31% while the proportion who think it would be a good time to buy and to sell property has risen to 39%, up three points on the previous quarter, while 15% of people think the next 12 months would be a bad time to do both. The proportion identifying rising property prices as a barrier to buying a property has risen to 37%, up six points on the previous quarter and the highest this figure has been since the survey’s inception, with average UK house prices now standing at £208,286 following a 10% increase during 2015. However, raising a deposit is still believed to be the main barrier to buying property, with 58% of people choosing this as a reason, up one point from last quarter). Job security is the number two reason, at 42%. Concerns about interest rate rises as a barrier have fallen, with only 11% of respondents mentioning this, down five points from last quarter. ‘Difficulties in raising a deposit, concerns about job security and high property prices remain the main barriers to people buying a home. The proportion identifying rising prices has risen to the highest in the survey’s history. The decline in affordability that this highlights is expected to dampen housing demand and property price growth over the medium term,’ said McKinlay. Half think mortgage interest rates will be higher in 12… Continue reading
Florida is most popular state in the US for overseas buyers
Florida remains the top State in the United States for foreign buyers with Miami one of the most popular locations for overseas real estate investors. Foreign real estate buyers made up 36% of sales in Miami and south Florida accounting for transactions worth $6.1 billion, according to the 2015 international buyer report from the Miami Association of Realtor and the National Association of Realtors. The annual survey, which includes data for Miami-Dade, Broward has this year expanded to include Palm Beach and Martin counties, and ranks countries of origin and highlights key characteristics of foreign buyers. Florida remains the top for international buyers with 21% of all foreign purchases in the US and Miami and Fort Lauderdale account for 50% of foreign sales, while the data also shows that there continues to be more foreign buyers in Miami than in the rest of the country. The number of estate agent members in Miami working with international buyers increased four points to 74% compared to the previous year more than double the national figure of 35%. ‘Miami members have unparalleled access to foreign buyers compared to the rest of the country,’ said Mark Sadek, 2016 chairman of the board of the Miami Association of Realtors. ‘Miami and south Florida attract foreign buyers unlike any other US market and increasingly from a more diverse group of countries,’ he added. In terms of dollar volume of sales in Miami some 78.9% of international sales were in Miami-Dade County, 18% in Broward, 2.7% in Palm Beach and 0.3% in Martin. Unit sales accounted for 22% of total sales in south Florida. The top five countries or origin for buyers in south Florida were Venezuela, Brazil, Argentina, Colombia, and Canada, accounting for 62% of sales. Other top countries included Mexico, France and Italy, Ecuador and Spain. The top five countries of origin for those buying properties just in Miami-Dade were Venezuela, Brazil, Argentina, Colombia, Italy, Mexico, Canada, Ecuador, France, and the Dominican Republic. In Broward County it is buyers from Canada and Venezuela that topped the list followed by Colombia, Argentina, Brazil, India and Russia while in Palm Beach County it is Canada and Brazil and Martin County China and Canada. The research also shows that foreign buyers spend more on properties than domestic buyers and paid $590,000 on average compared to locals spending $329,869. They also mostly pay cash with 75% doing so. Foreign buyers also prefer condominiums with 52% opting for this type of property and 61% buy in an urban area. They are mostly buying for a holiday and as an investment. Continue reading
