Tag Archives: homes
US housing market not set to normalise for at least three more years
Real estate professionals in the United States, including economists, agents and investment strategists, don't expect the housing market to normalise for at least three more years. The majority of the panellists on the Zillow Home price Expectations Survey predict that home values will end 2014 up an average of 4.8% from 2013, to a median value of $176,760. On average, respondents said they expect home values to exceed their pre-recession peak in February 2018 and in the longer term, respondents are most concerned by low household formation rates, would be first-time buyers in a weak financial position and demographic changes that are affecting the housing market. So shifting demographics and would be first time buyers financially ill prepared to buy will continue to hold back the housing market over the next several years. However, despite these hurdles, nearly all of the 107 panellists surveyed said they expect the housing market to normalise within the next five years. The report suggests that people are delaying home purchases both for financial reasons, as high rents make it difficult to save, and because they are generally waiting longer to marry and have children. Also, because rent is so high, many renters are forced to find roommates to share the costs, and more than a third of U.S. adults are living with a roommate, up from a quarter in 2000. As a result, household formation rates are well below average, slowing the housing market's recovery. Additionally, those near retirement age are staying in their homes longer rather than selling and downsizing or renting. Those two demographic factors are contributing to a falling homeownership rate and tighter than normal inventory levels, respectively, and are among the reasons experts say the market is being held back from a full recovery. ‘We've reached a point in the recovery where the only real cure-all is time. The market remains very challenging for younger, first time home buyers who face an uphill battle saving for a down payment, qualifying for a mortgage and finding an affordable home to buy,’ said Zillow chief economist Stan Humphries. ‘At the same time, many older homeowners are trapped underwater or are unable to find buyers for their homes. But the landscape is slowly changing, as incomes begin to grow, negative equity fades and new households start to form. These shifts won't occur overnight, but they are happening. Patience will be a virtue over the next few years as we wait for these traditional fundamentals to more fully take hold in the market,’ he pointed out. Asked when they expect the US housing market to normalise, 30% of panellists said they expected the market to stabilise one to two years from now, and 40% said it would take three to five years. Almost 20% said they believe the market either already has returned to normal, or will in the next 12 months. Panellists said they expect US median home values to rise 4.8% in 2014, on average, to $176,760, and another 3.7% in 2015. Panellists… Continue reading
Research reveals UK estate agents tactics for making a property more sellable
British estate agents are not always popular but new research reveals the lengths they will go to sell a property by making it more suitable for viewings. They will literally don rubber gloves to clinch a sale with many opening windows to get rid of bad smells, flushing the toilet and hiding inappropriate items on display, according to the research by Big Yellow Self Storage. Many agents have had to clean properties and hide items ahead of viewings. Some 36% said they have had to open windows to get rid of smells, 31% have pushed things under a bed and 29% have tidied up mess. Others have resorted to age old tactics to increase desirability with 22% turning on lights to create the impression of greater brightness and 15% brewing fresh coffee to create a homely atmosphere. The research also shows that 21% have tidied items away into cupboards, 17% have sprayed air freshener, 12% have flushed the toilet before viewers arrive and 10% have encouraged the property owner to get rid of large items. ‘Every agent wants to get the best price they can for their sellers, but many of the ways they do this go unnoticed. Agents get a bad press, but the research reveals that they’re often going above and beyond and undertaking less appealing tasks to make sure a property is presentable at viewing time,’ said property expert Kate Faulkner. The research also reveals agent’s tips on boosting a property’s sale price. Ways that reap particular dividends include clearing kitchen of small appliances such as kettles and toasters which can add £973 in value, creating an open plan living area adding £972 in value and de-personalising the property by removing ornaments and knick knacks adding £948 in value. It also found that in some cases, de-cluttering by removing bulky items to maximise space pushed the sale price up by as much as 11%. In fact, each square foot of floor space freed up is estimated to be worth an average of £238 by agents researched. ‘The UK is in the grip of a housing squeeze with the smallest homes in Western Europe, so space is increasingly desirable for buyers, as agents well know. Our research found that a fifth of buyers wouldn’t make an offer on a property because it was too cluttered, so it’s in the interests of agents to advise vendors on how they can maximise the space in their homes to clinch that sale,’ said Anthony Chenery, Big Yellow spokesperson. Some 95% of estate agents say de-cluttering leads to homes selling for more and 38% insist it increases the sale price 'every time' and yet only 56% have recommended short term self storage to clients as an aid to selling their home. Overall the study found that two thirds of sellers who de-cluttered before viewings received a higher offer than expected of £4,811 more, on average. ‘Self storage allows vendors… Continue reading
Home sales in Spain up over 12% on a quarterly basis
The number of homes sold in Spain increased by 12.1% in the second quarter compared to a year earlier and was boosted by an increasing number of foreign buyers. Data from the Ministry of Public Works shows that a total of 91,338 homes were sold in the quarter, the best second quarter since 2010. It also shows that 16.4% of the sales were to foreign residents, as the number of purchases by non-Spanish citizens rose for the 12 quarter in a row. In the 12 months from July 2013 to June 2014, some 337,115 homes were sold in Spain, a 12.2% increase from the same period a year earlier, according to the Ministry’s data. The gains were led by a 12.2% increase in the Canary Islands. Other areas continued to see sales declines but much more moderate than in previous quarters. Meanwhile, a judge in Almeria has awarded €135,000 damages to three British families who bought illegal homes a decade ago in Albox, in a case which might open the door for similar legal action around Spain. The judge ruled that they bought their homes in ‘good faith’ and decided that they deserved compensation for living with the possibility of losing their home. The judge also awarded €7,800 to another British family, whose savings were trapped in a home that was half built before work was stopped. It is estimated that more than 250,000 homes were built illegally in Andalusia during the boom years, creating an emotional and complex issue for local authorities. A plan was approved by the ruling junta in 2012 to legalise homes, but there has been little progress. A few weeks ago junta president Susana Díaz announced an additional 25,000 homes could be saved from destruction, under a new amendment to the plan. But there is still uncertainty about the fate of and ultimate legal status of the homes. For years owners, many of them expats, have not known whether their homes would be demolished. In many cases they could not rent or resell their property with the legal case ongoing. Last month prosecutors called for the demolition of 93 homes in Albox but the local mayor said the homes would likely be saved by the new legislation. ‘This whole drama of illegal homes remains a terrible stain on the reputation of Andalusia as somewhere to invest, discouraging fresh money and ultimately impoverishing the local community,’ said Mark Stucklin of Spanish Property Insight. ‘People who bought in good faith and ended up with illegal homes through no fault of their own have been treated appallingly by the Spanish authorities,’ he added. ‘It’s very probable that the homes might be legalised in a time frame that depends upon administrative procedures,’ the sentencing judge said but the judge in the Albox case went a step further, awarding damages to the owners. Developers and architects are liable for the payments. But if they can’t pay, the judge ordered the local town hall to pick up the bill for failing to control the situation and… Continue reading
