Tag Archives: investment
Property prices in metro areas in the US continue their upward trend
An uptick in sales activity amidst meagre supply levels upheld the trend of unwavering property price gains in an overwhelming majority of metro areas in the United States during the first quarter of 2016. It means that the median existing single family home price increased in 87% of markets with 154 out of 178 metropolitan statistical areas showing gains based on closed sales in the first quarter of the year compared with the same quarter of 2015, according to the latest data from the National Association of Realtors. Some 24 areas or 13% recorded lower median prices from a year earlier but there were more rising markets in the first quarter compared to the fourth quarter of 2015, when price gains were recorded in 81% of metro areas. The data also shows that 28 metro areas or 16% experienced double digit increases in the first quarter of the year, a slight decrease from the 30 metro areas in the fourth quarter of 2015 while 51 metro areas or 28% experienced double digit increases in the first quarter of last year. Lawrence Yun, NAR chief economist, pointed out that home prices chugged along at a robust pace in most metro areas during the first three months of 2016. ‘The solid run of sustained job creation and attractive mortgage rates below 4% spurred steady demand for home purchases in many local markets,’ he said. ‘Unfortunately, sales were somewhat subdued by supply and demand imbalances and broadly rising prices above wage growth. As a result, the path to home ownership so far this year remains strenuous for a segment of prospective buyers in the most competitive areas,’ he added. The national median existing single family home price in the first quarter was $217,600, up 6.3% from the first quarter of 2015 and the median price during the fourth quarter of 2015 increased 6.7% from the fourth quarter of 2014. Total existing home sales, including single family and condos, rose 1.7% to a seasonally adjusted annual rate of 5.29 million in the first quarter from 5.2 million in the fourth quarter of 2015 and are 4.8% higher than the 5.05 million pace during the first quarter of 2015. ‘In spite of deficient supply levels, stock market volatility and the paltry economic growth seen so far this year, the housing market did show resilience and had its best first quarter of existing sales since 2007,’ Yun explained. ‘The demand for buying is there, but unless the stock of new and existing homes for sale increases significantly especially in several markets in the West, the housing market will struggle to reach its full potential,’ he pointed out. At the end of the first quarter, there were 1.98 million existing homes available for sale, which was below the 2.01 million homes for sale at the end of the first quarter in 2015. The average supply during the first quarter was 4.3 months, down from 4.6 months a year ago. ‘Current home owners… Continue reading
French property market set to see growth in 2016
Enquiries into French property are up by 60% in the first quarter of 2016 compared with the previous year, the latest data shows, with steady growth predicted for the rest of the year. Figures from the FNAIM, the national association of French estate agents, show that a record breaking 800,000 older properties were sold in 2015. The annual analysis of the French property market from Home Hunts suggests that there was a large resurgence of British buyers last year. It says that it was a good a year for negotiations due to a combination of flexible property prices, low interest rates and favourable currency pairings Overall the prime property market on the Riviera is booming, boosted by price falls inland, and an increase in sales in coastal locations, such as Cannes and Saint Tropez, the report says. It predicts that the prime markets on the Riviera, in Paris, Toulouse, Bordeaux and parts of Provence and the Alps are due to see price rises throughout 2016. While the upcoming referendum in June on the future of the UK in the European Union could have an effect on British buyers' confidence in the market, the firm reports that so far there hasn't been much of a noticeable effect. ‘While the market continues to improve, June’s EU referendum will certainly unsettle certain British clients, but, if there is a Brexit, I don’t believe it will greatly impact those buying property overseas,’ said Tim Swannie, Home Hunts director. ‘So far it does not seem to have affected British buyers’ appetite for French property. The pound has lost a little strength compared to last year, but it is still comparatively high if you look at it over the past five to six years, so British buyers can still really make the most of their budgets,’ he added. However there are also many Dutch, Belgian, German, Scandinavian, Swiss, American and Middle Eastern buyers active in the market and the report points out that the new LGV (Ligne à Grande Vitesse) train line which will connect Bordeaux with Paris in 2017 means that property in the area is increasing in value. Similarly, the TGV now runs from London to Marseille and areas of Provence are becoming more popular as a result. Looking ahead the report suggests which areas of France are likely to be good buys. It says that on the popular Riviera locations such as Biot, Opio, Roquefort-les-pins, and Chateauneuf de Grasse could prove popular as buyers are now getting more for their money. In neighbouring Provence areas such as Bormes-les-Mimosas and Carqueiranne are described as offering excellent value for money. In the south west of the country, another location popular with British buyers, Cahors, Saint-Cirq-Lapopie, and Figeac currently offer better value than the Dordogne, while in Languedoc the city of Beziers is in an area undergoing a facelift and housing stock is starting to move. The report also says that Paris saw increased sales in 2015, particularly in November… Continue reading
UK residential property market saw strong start to the year, report confirms
The UK property market started 2016 at breakneck speed with even stronger and more buoyant activity than the positive sentiment seen during the final quarter of 2015, according to a new report. The number of active buyers entering the residential property market reached new heights, partly driven by the continuation of positive economic trends, such as low interest rates, says the analysis from Connells Group. This has tempted those on the fence to make their first move onto the property ladder sooner rather than later, according to David Livesey, group chief executive. But he pointed out that with the current level of available stock at historic lows, the additional demand from these new buyers combined with increased buy to let activity from investors looking to extend their portfolios before the higher stamp duty changes came into effect on 01 April, many of these first time buyers faced restricted choice and additional competition as they sought to find their ideal property. However he explained that the ratio of applicants to new instructions has evened out in the short term, while property price growth has not been as rapid as it has been in previous quarters, making climbing up or onto the housing ladder a less daunting feat for many. ‘This slight cooling has by no means turned into a chill, with property remaining a valuable asset that will continue to increase in value for the foreseeable future. Supply side initiatives, driven by the Government’s attempts to stimulate housebuilding in particular, may need further support if they are to have any meaningful impact on the level of available stock in the short term,’ said Livesey. The report shows that landlords and tenants have also enjoyed a positive and productive start to the year. It says that activity from renters has grown at a healthy pace, as this group often uses the start of the New Year as an opportunity to move into new accommodation. Despite the fresh demand from new applicants entering the lettings market in the first quarter of the year, the ratio of registered applicants to new instructions is by no means as high as it was during the first quarter of 2015 and average agreed rents have broadly stabilised across England, in the short term at least, the report points out. Livesey said that an increased supply of rental stock is easing pressure on the sector, as buy to let landlords purchase less expensive properties, some of these new build. ‘This may not be what the Government had in mind when it aided the construction of such properties, but it has given tenants respite nonetheless. In addition, tenants are also driving harder bargains, securing longer leases at a cheaper monthly rate meaning they need to return to the market less often, which is also attractive to landlords,’ he explained. ‘The mortgage market has also sprung back to life this quarter, largely propelled by high activity levels in the residential and… Continue reading
