Tag Archives: house
New property listings fall in UK with Brexit affecting the market
Some 68% of UK towns and cities saw new property listings fall in June, with supply down 13% in London alone, according to the latest property supply index which suggests Brexit is to blame for the decline. Lichfield and Winchester registered the biggest drop in supply in June, with new property listings down 37% and 36.5% respectively, the index from online estate agents HouseSimple shows. It also reveals that four of the top 10 biggest fallers in June were in the South of England and although the majority of areas saw supply levels fall in June, there were a few areas that bucked the trend. The biggest risers in June were the Scottish towns of Inverness and Stirling, where new property listings were up 30.5% and 18.5% respectively. Out of the top 10 risers, half the towns were in the South of England. In London new properties listed across the capital fell by 12.8%, following a fall of 2.4% in May. Wandsworth and Waltham Forest saw the biggest drop in supply, both down 34.9%. This follows a big rise in supply in both these boroughs in May, with new property listings up 9.5% in Wandsworth and 31% in Waltham Forest. Only five out of 32 London boroughs saw an increase in supply last month, with new property listings in Barnet up 11.4% in June and Barking and Dagenham up 8.8% leading the way. ‘Fear and uncertainty over the Brexit vote definitely had an impact on buyer and seller confidence in June, with many sellers holding off putting their properties on the market until the result was known,’ said Alex Gosling, chief executive officer of HouseSimple. ‘Now we know, and although the decision has come as a bit of a shock, at least a degree of uncertainty has been taken out of the equation. The property market can now roll up its sleeves and get on with it. Nothing has fundamentally changed overnight and people still need to buy and sell homes whatever the market conditions,’ he explained. ‘We still have a supply shortage, and this may well counter any fallout from Brexit. There were concerns about the London market faltering, but demand is still strong in the capital and the weak pound should attract foreign investors looking to pick up bargains, particularly at the top end of the market,’ he added. ‘For the rest of the year, we may see a small dip in prices as there are choppy seas ahead, but it’s certainly not the end of the world levels predicted by some doom-mongers. Supply should hopefully edge up, as fears around the impact of Brexit dissipate, and sellers feel more confident about market conditions and the wider global economy,’ he concluded. Continue reading
Almost half of UK estate agents think Brexit is having a negative impact
Some 42% of estate agents in the UK believe that the decision to leave the European Union has already had a negative impact on their business, new research has found. One agency even found that following the vote on 23 June some 10% of its sales fell through and valuations were reduced by 40%, according to a survey by software supplier Dezrez. A third of those surveyed predict that there will be between 5% and 20% less properties being put on the market and suggested that home owners may see the value of their house drop by 5 to 15%. But less than believe that property values will fall considerably. The research also found that 52% of estate agents expect vendors or buyers to pull out of sales, or for vendors to take their houses off the market but 53% had seen no affect to date. Indeed, some 37% believe leaving the EU won’t have a long term impact on their business, the remainder are either unsure or anticipate a change in the market and their business model. Few have actually prepared for any kind of Brexit impact. The poll showed that 54% believe it is too early to either have a strategy or indeed need one, while 16% said they have a strategy and 13% are working on one. ‘As the economic landscape continues to shift following the UK’s vote to leave the European Union, the Bank of England Governor Mark Carney has warned prospective buyers to proceed carefully if planning to borrow money,’ said the firm’s chief executive officer Justin Morris. ‘This warning, and the ongoing analysis from property professionals, is unsurprising. However, until the market settles, we won’t know the exact extent the effect Brexit will have on the residential property market. What is clear is that in the short term uncertainty will lead to a dip in market confidence,’ he explained. He added that while opportunist buyers may jump at the chance to renegotiate on price, more prudent buyers will be looking at the affects the turbulent economy is having on their finances, making sure that they will still be able to afford their mortgage. He pointed out that many of the estate agents believe that there are still more buyers than sellers. So, whilst a base reduction in housing stock and value is likely, the market could very well even itself out and remain steady. ‘The role of the estate agent will be increasingly important to vendors and buyers a like. Negotiations may become trickier and sales progression more complex, consumers will rely heavily on traditional estate agents for their experience and advice. There is no doubt that there are challenges and opportunities ahead,’ he concluded. Continue reading
First time buyers in the US face higher prices, latest index shows
Entry level home values in the United States for properties popular with first time buyers have increased by 8% in the last year, twice as fast as top tier home prices, new research shows. It means that first time byers are facing stiff competition and buyers looking for more expensive homes have more choice, according to the data from the latest real estate market report from property firm Zillow. The data also shows that the number of expensive homes for sale has dropped slightly, but there are far fewer entry level homes on the market with supply in this sector down by 9% year on year. Nationally, home values rose 5.4% over the past year, to a median home value of $186,100 while rents increased by 2.9% to a Zillow Rent Index of $1,407. Home values for the most expensive homes on the market, which at one point in February 2014 were growing at an average of 7% annually, have stabilised. Those homes have been gaining value at about 4% each year since the beginning of 2015. According to the index report the stark differences between the top and bottom of the housing market shed light on the two very different experiences home buyers will face in most markets this summer. Buyers looking for the most expensive homes will find slashed prices, more options and less competition. It's a much different story for first time buyers, who will be up against rising prices, low inventory and tough competition, with homes selling over asking price in many of the nation's hottest housing markets. Over the past 18 months, the percent of listings with a price cut among the most expensive third of homes has slightly increased, while the percent of listings with a price cut among entry level homes have decreased. Indeed, since the beginning of 2015, top tier homes have had the most price cuts which the report says is another sign that top tier buyers are having an easier time shopping for homes in the current market. The rental market is also stabilizing at the high end. A recent Zillow analysis found that rents aren't rising as quickly for apartments in more expensive zip codes. ‘The top of the market is starting to stabilise, and people are beginning to take notice. Buyers looking for entry level homes are having bidding wars in many markets, while it's not uncommon for high priced homes to stay on the market a few months longer,’ said Zillow chief economist Svenja Gudell. ‘The housing market is much more forgiving for current homeowners looking to move into a bigger, more expensive home. These buyers can be a bit more selective, and may even get a good deal,’ she added. Buyers looking for a home at the top of the market will have more to choose from than those looking for a home in the bottom third of the market, which are often sought after by first time home buyers. The… Continue reading
