Tag Archives: house
House prices rise in Portugal for first time in five years
House prices in Portugal increased in January as the country’s economy expands and the unemployment rate falls, according to the latest monthly market survey from the Royal Institution of Chartered Surveyors. It is the first time that prices have increased since the RICS/Ci survey was launched in 2010 and comes at a time when buyers demand is increasing. RICS says that improving employment is being reflected in rising new buyer demand and for over 12 months now, new buyer enquiries have been in positive territory and national confidence has reached a series high of +32. It also says that the outlook for sales volumes is strengthening and sales expectations are more elevated than at any other point in the survey’s four year history. The Portuguese economy expanded for the first time since 2010, albeit modestly, with average annual GDP growth of 0.9%. After a three year period in which GDP contracted by nearly 6%, a recovery does now appear to be emerging. The rate of unemployment has fallen by nearly 2% over the past 12 months and now stands at 13.4% having reached a peak of 17.7% in early 2013. The report describes the emergence of a recovery in house prices, supported by a consistent rise in confidence but also points out that in the lettings market, rents are still falling for now, although survey respondents’ expectations point to a more stable trend on the horizon. In the sales market, buyer demand continued to increase, with the pace of improvement accelerating slightly over the month. Meanwhile, sales continued to rise, extending an uninterrupted positive run dating back to February 2014. Moreover, respondents’ sales expectations are more elevated than at any other point over the past four years. Looking ahead, prices are expected to continue to rise over the next three months but RICS explains that a sustained run of positive data will be needed before it is in a position to talk about a genuine recovery. At the regional level, prices are now rising in both Lisbon and the Algarve, but remain more or less stable in the Porto market. In the lettings sector, tenant demand continues to rise gradually and the number of new landlord instructions is diminishing. However, rents are still falling for the time being, although respondents do expect a flatter trend to emerge in the coming months. ‘Even though the volume of new credit is still low, it has been reported by several real estate agents that banks are now more positive about the market,’ said Ci spokesman, Ricardo Guimaraes. ‘Some already have commercial campaigns, announcing lower spreads. This might be the element that was missing to broaden out the recovery that was primarily located in Lisbon,’ he added. According to RICS senior economist, Josh Miller, the Portuguese housing market reached an important milestone in January with prices rising for the first time since the country’s bailout programme. ‘Whether this trend can be sustained depends on the broader economic recovery…. Continue reading
UK annual house price growth slows for six month in a row
Annual house price growth in the UK slowed to 5.7% in February from 6.8% in January, the sixth month in a row that it has slowed, the latest index figures show. UK house prices fell by 0.1% in February, taking the average price to £187,964, according to the data from the Nationwide Building Society. According to Robert Gardner, Nationwide's chief economist, the broader economic backdrop has remained supportive of housing market activity. ‘Mortgage rates remain close to all-time lows and consumer confidence remains buoyant thanks to a further steady improvement in labour market conditions,’ he said. ‘Indeed, the unemployment rate has continued to decline and earnings growth has picked up, particularly in inflation adjusted terms, thanks in part to the sharp decline in energy prices,’ he added. But he pointed out that the pace of housing market activity remains fairly subdued. ‘There was a small increase in the number of mortgages approved for house purchase in December, up 2% from 59,000 in November to 60,300 in December, though it remains too early to determine whether this marks a turning point in activity,’ he concluded. The UK property market is undergoing a sustained reality check, according to Alex Gosling, chief executive officer of online estate agents House Simple. But he believes it is far too premature to suggest that the property market is running out of steam. ‘The strong jobs market, rising real wages and cheap credit are fuelling consumer confidence, and for many renters the home owning dream remains as attractive as ever. But the fillip provided by the Stamp Duty reforms announced late last year appears to be waning, and mortgage activity is fairly subdued,’ he explained. ‘Tightened lending criteria are forcing first time buyers to save much more and much longer before they can get a mortgage. The most recent English Housing Survey found that just 36% of 25 to 34 year olds own their home, compared to 59% a decade before,’ he pointed out. ‘Steady, not stellar, growth is likely to be the pattern for house prices in 2015. The double digit rises of 2014 are history,’ he added. Continue reading
Home sales down almost 5% in the US in January
Existing home sales in the United States declined in January to their lowest rate in nine months, but the pace was higher than a year ago for the fourth straight month, according to the latest index. The data from the National Association of Realtors all major regions experienced declines in January, with the Northeast and West seeing the largest. Total completed transactions fell 4.9% to a seasonally adjusted annual rate of 4.82 million in January, the lowest since last April from an upwardly-revised 5.07 million in December. Despite January’s decline, sales are higher by 3.2% than a year ago. Lawrence Yun, NAR chief economist, said that the housing market got off to a somewhat disappointing start to begin the year with January closings down throughout the country. ‘January housing data can be volatile because of seasonal influences, but low housing supply and the ongoing rise in home prices above the pace of inflation appeared to slow sales despite interest rates remaining near historic lows,’ he explained. ‘Real estate agents are reporting that low rates are attracting potential buyers, but the lack of new and affordable listings is leading some to delay decisions,’ he added. Total housing inventory at the end of January increased 0.5% to 1.87 million existing homes available for sale, but is 0.5% lower than a year ago when it was 1.88 million. Unsold inventory is at a 4.7 month supply at the current sales pace, up from 4.4 months in December. The median existing home price for all housing types in January was $199,600, which is 6.2% above January 2014 and marks the 35thconsecutive month of year on year price gains. ‘Although sales cooled in January, home prices continued solid year on year growth. The labour market and economy are markedly improved compared to a year ago, which supports stronger buyer demand. The big test for housing will be the impact on affordability once rates rise,’ Yun pointed out. The data also shows that all cash sales were 27% of transactions in January, up from 26% in December 2014 but down from 33% in January of last year. Individual investors, who account for many cash sales, purchased 17% of homes in January, unchanged from last month and below January 2014 when it was 20%. Some 67% of investors paid cash in January. Distressed sales, that is foreclosures and short sales, were 11% of sales in January, unchanged from last month but down from 15% a year ago. Some 8% of January sales were foreclosures and 3% were short sales. Foreclosures sold for an average discount of 15% below market value in January, unchanged from December, while short sales were discounted 12%, also unchanged from last month. Properties typically stayed on the market slightly longer in January at 69 days than December at 66 days and a year ago at 67 days. Short sales were on the market the longest at a median of 128 days in January, while foreclosures… Continue reading
