Tag Archives: house
US pending home sales up for fourth month in a row, latest index shows
Pending home sales in the United States rose in April for the fourth straight month and reached their highest level in nine years, according to the latest data. This rise was led by the Northeast and Midwest, but all four major regions saw increases in April, according to the pending home sales index from the National Association of Realtors. The forward looking indicator based on contract signings increased 3.4% to 112.4 in April from a slight upward revision of 108.7 in March and is now 14% above April 2014, the largest annual increase since September 2012. The index has now increased year on year for eight consecutive months and is at its highest level since May 2006 when it was 112.5. According to Lawrence Yun, NAR chief economist, the steady gains in contract activity each month this year highlight the fact that buyer demand is strong. ‘Real estate agents are saying foot traffic remains elevated this spring despite limited, and in some cases severe, inventory shortages in many metro areas,’ he said. ‘Home owners looking to sell this spring appear to be in the driver's seat, as there are more buyers competing for a limited number of homes available for sale. As a result, home prices are up and accelerating in many markets,’ he added. Following April's decline in existing home sales, Yun expects a rebound heading into the summer, but the likelihood of meaningful gains will depend on a much needed boost in inventory and evidence of moderating price growth now that interest rates have started to rise. ‘The housing market can handle interest rates well above 4% as long as inventory improves to slow price growth and underwriting standards ease to normal levels so that qualified buyers, especially first time buyers, are able to obtain a mortgage,’ explained Yun. After falling four straight months, the index in the Northeast bounced back solidly, up 10.1% to 88.3 in April, and is now 9.4% above a year ago. In the Midwest the index increased 5% to 113 in April, and is 13.3% above April 2014. Continue reading
New research reveals annual housing costs in England and Wales now above £5,500
The total annual cost of housing across England and Wales is approximately £133 billion, with households paying an average of £5,593 per year according to new research. While mortgage interest and repayments make up 49% of the total cost, private rents now account for 36% of housing costs, the research from international property adviser Savills shows. However, there is significant regional variation around this figure, reflecting a wide geographical divide. In London there are relatively few households who own their own home mortgage free, private rent makes up almost half of the total cost of housing, bringing the average cost per household to £11,329. Meanwhile, in the North East where housing is comparatively less expensive in each tenure group and 24 per cent of the cost of housing is in the form of social rent, the average cost per household is £3,450. ‘London households foot the bill for over a quarter of the total annual cost of housing in England and Wales, due to a combination of the most expensive housing and the smallest percentage of homes owned outright,’ said Lucian Cook, head of Savills UK residential research. ‘Other major cities such as Manchester, Nottingham, Liverpool and Southampton also have some of the highest levels of households with housing costs, but the availability of more affordable property across all tenures reduces the total cost per home in these locations,’ he added, At a more local level, of the 30 most expensive places to live by total cost per household, only six are outside London, namely Elmbridge, South Bucks, Winsor and Maidenhead, Epsom and Ewell, St Albans and Guildford. The least expensive locations reflect not just lower value housing markets, but also where there are relatively high proportions of older home-owning households who have paid off their mortgage, such as Powys, Staffordshire Moorlands and Eden Continue reading
Scotland sees boost in interest from buyers at home and abroad
There has been a clear increase in interest and property viewings across Scotland from local, national and international buyers, according to an independent consultancy. The traditionally busy spring period has been followed by even stronger growth in the first few weeks of summer with property valued up to £500,000 selling especially well, says CKD Galbraith which has offices across the country. However, homes valued above the £500,000 level are still tending to stay on the market for longer and overall the market has experienced the natural peaks and troughs in activity in the run up to events such as elections, referendums and holiday periods. But overall CKD Galbraith said its offices have witnessed a considerable increase in buyer activity recently with many sales resulting in competitive bidding and closing dates. ‘We have seen an especially strong surge in activity across the country recently and believe this is due to a number of factors. Political uncertainty has eased and potential buyers and sellers have a renewed confidence in the property markets from the south of England to the north of Scotland,’ said John Bound, partner at CKD Galbraith. ‘There has been increased activity right across Scotland and in Edinburgh demand for high end city centre property continues to rise. The Inverness office is experiencing some extremely positive movements. We were instructed on 26 new properties in the past three weeks and we are being invited to pitch for more on a daily basis. There have been over 50 viewings in a fortnight with prime property on the west coast continuing to do very well indeed,’ he pointed out. The Edinburgh property market made an extremely strong and promising start to 2015 and shows no signs of slowing down, despite any uncertainty which surrounded the general election, according to Lorna Donaldson from CKD Galbraith’s Edinburgh office. ‘During the first three months of 2015 the Edinburgh residential team sold over 40% of its city centre offerings to cash buyers, with just under half of all city sales going to closing date, and with properties achieving up to 14% over the home report valuation,’ she said. ‘May has definitely marked a return of confidence and increase in interest from buyers who are ready and able to act fast and pay a premium for the right property in their preferred location,’ she added. The firm’s Perth office has also reported a notable boost in activity with three properties having gone under offer in the last week alone and rising viewing figures for properties sensitively priced across all price brackets. The team in Perth is also preparing to launch a further 16 properties to the market and expect interest from buyers both locally and national, as well as the international buyer. The Castle Douglas office has seen a good level of new property coming to the market in Dumfries and Galloway. ‘Accurate and sensitive pricing remains key to buying and selling property in the region,’ said David Corrie. Continue reading
