Tag Archives: africa
Homes to buy are more affordable in many US metros than renters think, research suggests
Home ownership in the United States has slowly fallen in recent years to currently its lowest level since 1965 but new research from the National Association of Realtors suggests that could be halted. The research shows that there are many affordable metro areas and a large segment of current people who rent their home earn enough income to qualify to buy a property. NAR reviewed employment growth, household income and qualifying income levels in nearly100 of the largest metropolitan statistical areas across the country to determine which areas with employment gains above the recent national average also have the largest share of renters who can currently afford to buy a home. Of the top 10 metro areas with the highest share of renters who earn enough to buy, nine were either in the South or Midwest, including three cities in Ohio. Lawrence Yun, NAR chief economist, pointed out that there has been a significant increase in renter households both among young adults and those who lost their home since the economic downturn, especially in metro areas that have seen robust job creation and a resulting influx of new residents. ‘Even in a time of expanding home sales, steady job growth and historically low mortgage rates, the homeownership rate recently tumbled to its lowest level in over five decades as many renters struggle to juggle escalating rents without commensurate income gains,’ he said. ‘However, this new study reveals that there are several affordable, middle tier markets with solid job gains and a large segment of renters who earn enough to buy,’ he added. The top 10 metro areas highlighted in NAR’s study were all outside of the West Coast and each had a share of renters who qualify to buy that was well above the national level of 28%. Top is Toledo in Ohio and Little Rock in Arkansas both with 46%, followed by Dayton in Ohio at 44%, Lakeland in Florida, St. Louis in Missouri and Columbia in South Carolina all at 41%, Atlanta at 40% and then Columbus in Ohio, Tampa in Florida and Ogden in Utah all at 38%. According to Yun, it's no surprise that many of the markets with the most renters qualified to buy are in the Midwest and South. The median existing home sales price in these two regions continue to be lower than the Northeast and West, and while many of these areas were slower to recover from the recession, improvements in their local labour markets in the past year have pushed their hiring levels to at or above the national average growth rate. ‘Overall housing affordability and local job market strength play a pivotal role in a renter's decision on whether to buy a home or sign another lease. The good news is that other recent NAR survey data shows that those residing in the two regions were the most likely to say that now is a good time… Continue reading
Architects set out what needs to be done to improve UK housing market
Housing policy alone is not enough to solve the UK’s housing crisis whose roots are as complex as they are varied, according to architects. The Royal Institute of British Architects (RIBS) says that as demand for new homes continues to outstrip supply successive governments have failed to keep up and it believes that the only solution lies in bringing together the public and private sector to promote, enable and finance new homes, and improve the quality of homes. In a new report it points out that high quality design needs to be at the heart of the solution. ‘Without it, we’ll be solving one problem by storing up further challenges for the future,’ it says in a anew analysis report and calls for housing policy to be added to the remit of the National Infrastructure Commission and for future infrastructure schemes to include details of their impact on housing supply. It also calls for the establishment of a Chief Built Environment Adviser and better use of public resources. ‘With interest rates at historic lows, more can be done to use the balance sheets of public and private sector bodies to boost housing supply,’ the report suggests, adding that the cap on Housing Revenue Account receipts should be lifted to allow councils to borrow to build social housing. Other possibilities include central and local governments setting up public sector investment vehicles and a national housing investment bank to issue bonds and ISAs, recycle right to buy receipts and attract long term institutional investment. RIBA believes that local authorities should set up Local Housing Development Funds, with initial capital for investment provided by local authority pension funds. Once such schemes are up and running, they would be able attract secondary institutional investment and the Government should transfer responsibility and resources for housing and planning to local and regional authorities. ‘This transfer needs to be accompanied by greater autonomy over policy setting. The regeneration of housing estates should be based on an approach which makes the most of the strengths of existing communities and addresses the challenges exacerbated by the urban environment such as anti-social behaviour or high rates of obesity,’ the report says. ‘Local leaders should be empowered to shape their local housing market by taking control over requirements for affordable housing, including the tenure composition for new developments such as social rent, affordable rent, living rent, shared ownership, and Starter Homes, based on local housing need, rather than fixed national targets,’ it adds. It also points out that self build and custom build add value to a locality, can be an affordable routes to home ownership, and are valuable as delivery mechanisms for new, high quality homes. It acknowledges that the Self-Build and Custom Housebuilding Act and the Housing and Planning Act aim to identify land and provide planning policies to support custom build but says that unless local authorities have sufficient resources they will struggle to implement their duties… Continue reading
Stamp duty change and Brexit result in falling prices in prime central London
Prime central London property prices fell again in the first quarter of 2016 but transaction levels increased marginally, according to the latest index to be published. Overall the market was notably quieter during due to a combination of the uncertainty surrounding the European Union referendum and a slowdown following a boost in the first quarter ahead of stamp duty changes in April. The market has also been influenced by higher stamp duty for high value properties, according to the report from real estate firm JLL which adds that potential buyers adopted a wait and see attitude ahead of the referendum vote. Since the vote to leave the EU, and the subsequent weakening of sterling, several international buyers have been more active although a good deal of uncertainty remains, especially in terms of the medium term outlook, the report says. However, the fact that the vote is now in the past also seems to have encouraged a few more domestic buyers back into the market. The number of properties on the market has increased again during the second quarter as vendors fail to sell or elect not to sell at prices unacceptable to them. This additional choice and bargaining power for purchasers is contributing to both the scale of price falls and the slowdown in transactions. ‘Given recent uncertainty it is unsurprising that prices have weakened again. On average prices have fallen by 3.3% in the year to quarter two, but they have also declined in every quarter since the first quarter of 2015 as a variety of influences have impacted on confidence and switched the balance of power in favour of buyers,’ said Neil Chegwidden, residential research director at JLL. The data also shows that prices slipped by 0.9% in the second quarter of 2016 having fallen by 1.1% in the first quarter and price falls over the past year have been greater for higher value properties although large lateral flats continue to hold their value better than other large apartments or houses. On average prices have declined by 6% over the 18 months to the second quarter of 2016 with higher value property prices down by an average 10% and prices have fallen across all price ranges during quarter two and over the last year. The sub £2 million market continues to be the most resilient. However, prices have fallen in each quarter since the first quarter of 2015. On average prices in the sub £2 million bracket have fallen by 2.6% over the 12 months. Meanwhile, prices in the £2 million to £5 million market have been declining for 18 months now, with prices down 2.9% during the year to the second quarter. Prices in the £5 million to £10 million price bracket and the £10 million plus market have been impacted most notably by the stamp duty changes. Prices have dropped by 4.4% in the year to quarter two in the £5 million to… Continue reading
