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US pending homes sales more or less unchanged in December
Pending home sales in the United States were mostly unchanged in December, but inched forward slightly, fuelled by a large increase in the Northeast that outpaced declines in the other three major regions. The latest index from the National Association of Realtors increase by just 0.1% month on month and is now 4.2% above December 2014, the 16th month in a row that it has risen. ‘Warmer than average weather and more favourable inventory conditions compared to other parts of the country encouraged more households in the North east to make the decision to buy last month,’ said Lawrence Yun, NAR chief economist. ‘Overall, while sustained job creation is spurring more activity compared to a year ago, the ability to find available homes in affordable price ranges is difficult for buyers in many job creating areas. With home building still grossly inadequate, steady price appreciation and tight supply conditions aren't going away any time soon,’ he added. According to Yun, although healthy labour market conditions will persuade more households to buy, it's possible overall demand could be somewhat curtailed in coming months. The stock market's sizeable losses since the start of the year and the effect slowing manufacturing activity is having in some areas, especially in the energy sector, could cause some to hold off on buying. ‘The silver lining from the market turmoil in recent weeks is the fact that mortgage rates have slightly declined. Buyers looking to close on a home before the spring buying season begins may be rewarded with a mortgage rate at or below 4%,’ Yun explained. Existing homes sales this year are forecast to be around 5.34 million, an increase of 1.5% from 2015. The national median existing home price for all of this year is expected to increase between 4% and 5%, down from the 6.8% in 2015. Rents, which have far outpaced wages in recent years, are expected to slightly slow to 3.3% growth in 2016 from 3.6% a year ago. Multifamily housing starts are expected to reach 420,000 units this year, the highest level since 1987. A breakdown of the data shows that the data increased 6.1% in the North east in December, and is now 15.3% above a year ago. In the Midwest the index decreased 1.1% to 103.6 in December, but is still 3.6% above December 2014. Pending home sales in the South declined 0.5% to an index of 119.3 in December but are 1% higher than last December. The index in the West decreased 2.1% in December to 97.5, but remains 3.4% above a year ago. 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
Prime property markets in key UK towns set to see continued demand
Price growth for prime properties in key urban markets in the UK is likely to continue this year, driven by growing demand among buyers, new research suggests. In particular demand for properties in key town and city locations such as Oxford, Bath, Bristol and Cheltenham with access to good schools, transport links and amenities is expected to be high. They are attractive to buyers from London, including commuters, as infrastructure improvements make them and their amenities more accessible, according to the research from real estate firm Knight Frank. These include the electrification of the Great Western rail line to London from Bristol and Bath and the new Oxford Parkway railway station just opened to the north of the city. Annual price growth for prime properties in the Oxford city market eased to 1.3% in 2015, but the research suggests that as Oxford’s economy is diverse, led by IT, high tech manufacturing and publishing and the city’s hospitals and two universities are major employers, demand from local buyers is ever present. ‘Activity is expected to remain strong in early 2016, especially as some buyers look to complete purchases ahead of the introduction of new stamp duty rules which have the potential to impact a small section of the market,’ the report says. The report points out that annual price growth for prime properties in the Bath city market was 4.5% in 2015, compared to a 3.1% rise across the wider prime country market and this outperformance reflects the continued demand among buyers for prime properties in city centre locations. Bath is an international tourist destination home to a wealth of museums, Georgian streets and other attractions that mark it out as a desirable place to live and visit, including a compact city centre with a good retail offering. This was underlined by a 6% rise in the number of potential buyers registering their interest in purchasing a home in Bath through Knight Frank year on year, a 15% jump in sales volumes over the same period and a 43% increase in the number of people searching for homes in Bath on Knight Frank’s website. A number of these individuals were relocating or looking to relocate from the capital. Knight Frank data shows that outside of the Home Counties, Bath along with Oxford was the most popular location for Londoners looking to move in 2015. ‘The prospect of more regular services between Bath and London from 2017 as a result of improvements being made to both the track and the trains will make commuting an even more viable option,’ the report explains. Property prices in Bristol rose by 6.6% in 2015 driven by the growing trend among buyers for properties in key town and city markets with access to good schools, transport links and amenities and a lack of available properties for sale has been the biggest driver of the market in Bristol over the last year, according to the report. Stock levels were at… Continue reading
