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Record median home prices recorded in four regions in New Zealand
Four regions in New Zealand saw record sale prices in July with the average median value up to $505,000, according to the latest data to be published. It means that the median sale price increased by $5,000, just $1,000 short of the record median price reached in May 2016, the data from the Real Estate Institute of New Zealand shows. The Waikato/Bay of Plenty region recorded its eighth record median sale price in nine months, reaching $450,000, up 2.7% on June 2016, while the median price in Auckland reached $825,000, up 0.5%. Northland reached $376,000, up 4.4% and Manawatu/Wanganui reached $265,000, up 6.4%. The data also shows that inventory continues to fall rapidly nationwide, with a 33% decline in properties available for sale year on year and six regions seeing falls of greater than 40%. Wellington and Hawke’s Bay each have less than 10 weeks of supply available, with Waikato/Bay of Plenty at just on 10 weeks supply. At the same time, the number of residential dwelling sales for July 2016 was 7,299, a drop of 7% on June. Sales volumes also fell 10% compared to July 2015, with sales for Auckland falling just over 20% compared to July last year. ‘Prices continue to rise in many regions, showing that demand is still firm. Sales volumes remain below previous periods, as the continued shortage of supply impacts buyers, who are struggling to find properties to buy,’ said REINZ spokesperson Bryan Thomson. ‘We will watch market reaction with interest as the expected increase in listing numbers during the spring and summer selling period become available and the market assesses the impact of the recently announced LVR rule changes, the approval or otherwise of the Auckland Unitary Plan and possible interest rate cut,’ he explained. ‘We understand that it must get very confusing for people with so much data available on the real estate market. REINZ data provides the most up to date and complete set of detailed numbers on national sale prices and trends, plus the factors that underpin them. The key thing is to watch the trends over time, and particularly the seasonally adjusted numbers, as they take month on month changes out of the equation and focus on how the market is really moving,’ he added. A breakdown of the figures shows that the national median house price rose $40,000 or 9% to $505,000 from July 2015 to July 2016. Central Otago Lakes recorded the largest percentage increase in median price compared to July 2015, at 32%, followed by Waikato/Bay of Plenty at 26% and Northland at 16%. Auckland prices up, volumes come off, inventory stays tight Compared to July 2015 the median price across the Auckland region rose by $90,000, up 12% to a new record high of $825,000. On a seasonally adjusted basis Auckland's median price rose 1% compared to June. Although sales volumes in the Auckland region fell 8% compared to June, and fell 20% compared to July… Continue reading
Mortgage arrears in UK at lowest level since records began 20 years ago
The number of mortgages in arrears in the UK continued to fall in the second quarter of this year and is now at its lowest level since records began more than 20 years ago, the latest data shows. At the end of June 2016 there were 92,500 mortgages in arrears of at least 2.5% of the balance, 0.84% of the total, down from 95,900 at the end of March, according to the figures from the Council of Mortgage Lenders (CML). The number of mortgages in arrears was 13.4% lower than a year ago, when the total stood at 106,800, and is now at its lowest level since the run of figures began in 1994. The number of properties taken into possession also fell in the second quarter, to 1,900, down from 2,100 in the first three months of the year. There was a decline in both the numbers of owner occupied and buy to let properties taken into possession. The CML says that if the present trend continues, the number of mortgaged property repossessions this year is on course to be the lowest since 1982 when there were 6.5 million mortgages, compared to 11.1 million today. A more detailed breakdown of the data shows that there was a fall in the number of borrowers in each band of arrears, apart from those owing more than 10% of the mortgage balance. The number in this category edged up from 23,500 to 23,700, the same number as at the end of last year. Ministry of Justice figures also continue to reflect a pattern in which the number of mortgage possessions is significantly lower than in the rental sector. Those figures showed, for example, that there were 42,729 rental evictions in England and Wales in 2015, compared to 5,592 mortgaged property repossessions, even though the rented sector accounts for only around one third of the housing stock. CML data also shows different patterns of arrears and possessions in the owner occupied and buy to let mortgage markets. As before, arrears rates are higher among owner occupiers than among buy to let landlords, while rates of possession are lower. The CML says that this is because lenders try to avoid repossession wherever possible to help owner occupiers recover from a temporary period of payment difficulty, but may move more quickly to protect their position on rental properties as tenants move out in the more commercial buy to let sector. ‘Another welcome reduction in arrears and possessions shows that borrowers are continuing to prioritise their mortgage commitments and that lenders remain committed to helping them through a period of temporary difficulty, wherever possible,’ said CML director general Paul Smee. ‘As ever, the key to success in dealing with any payment problems is to address them as soon as possible. Any borrowers anticipating difficulty in paying their mortgage should therefore speak to their lender at the earliest opportunity,’ he added. Meanwhile, new figures from the Finance and Leasing Association (FLA) show… Continue reading
First time buyer lending in UK up by 25% in June compared to a year ago
There was a growth in the home lending market in the UK in June with the first time buyer market seeing a particular boost in activity, according to the latest figures from the Council of Mortgage Lenders (CML). Home owners borrowed £12.3 billion, up 29% month on month and 12% year on year. They took out 68,200 loans, up 26% on May and 8% on June 2015. First time buyers borrowed £5.5 billion, up 28% on May and 25% on June last year. This equated to 34,300 loans, up 24% month on month and 17% year on year. Home movers borrowed £6.9 billion, up 33% on May and up 5% compared to a year ago. This represented 33,900 loans, up 28% month on month and up 0.3% on June 2015. Remortgage activity totalled £5.6 billion, up 8% on May and 6% compared to a year ago. This came to 32,400 loans, up 4% month on month but down 2% compared to a year ago. Landlords borrowed £2.9 billion, up 12% month on month but down 15% year on year. This came to 18,300 loans in total, up 8% compared to May and 17% compared to June 2015. On an unadjusted basis in the second quarter of the year home owners borrowed £30 billion, down 2% quarter on quarter and 7% year on year. They took out 169,600 loans, up 4% on the first quarter and 3% on the same quarter in 2015. First time buyers borrowed £13.7 billion, up 23% on the first quarter of the year and up 21% on the same quarter in 2015. This equated to 87,100 loans, up 23% month on month and 14% year on year. Home movers borrowed £16.4 billion, down 16% on first quarter and 2% compared to a year ago. This represented 82,600 loans, down 10% quarter on quarter and 6% on the second quarter 2015. Remortgage activity totalled £16.9 billion, up 10% on the first quarter and 25% compared to a year ago. This came to 98,700 loans, up 10% quarter on quarter and 17% compared to a year ago. Landlords borrowed £8 billion, down 46% compared to the first quarter of the year and down 9% year on year. This came to 51,600 loans in total, a drop of 45% compared to the first quarter and down 11% year on year compared to the second quarter of 2015. The CML now publishes seasonally adjusted monthly and quarterly data (see attached), alongside the normal unadjusted data. Paul Smee, CML director general said that this makes it easier to spot underlying trends. ‘These figures reveal growth in house purchase activity and in particular for first- time buyers. As ever, there is uncertainty and it will take more time and patience to understand how the market will evolve in the current environment as these figures predominantly cover activity in the run up to the referendum,’ he explained. ‘We still believe that the mortgage market is well capitalised, resilient… Continue reading
