Tag Archives: investment
US housing market growth expected to be steady in 2016
Housing market growth in the United States is holding steady with a rise of 0.6% quarter on quarter, according to the latest real estate analysis report. The annual spring housing boom has been beneficial to most regions across the nation, with most markets outside of the Northeast seeing a small bump in quarter on quarter growth in the last month. The data from real estate firm Clear Capital also shows that in the West quarterly growth has increased by 0.2% to 1.3%, while quarterly growth in the South and Midwest have increased to a modest 0.8% and 0.3% respectively. However, growth figures in the Northeast are concerning with the firm’s models showing an average of zero price growth in the region over the last quarter. ‘This is especially alarming when considering that the spring season is a time when markets typically gain momentum leading into the busy summer season,’ said Alex Villacorta, vice president of research and analytics at Clear Capital. He pointed out that while prices in the region as a whole have appeared to stagnate, there are markets in the region that are performing positively, such as New York and Hartford, where prices have increased by 0.5% and 0.7% respectively over the last quarter. The regional year end forecasts may also be a cause for concern, with the West and North-eastern regions projected to fall potentially into negative territory over the next six months. The analysis predicts that by the end of 2016, the nation may see a new leader in terms of regional growth as the South and Midwest are predicted to have the highest price growth over the next six months, around the 0.5% mark. ‘While these six month growth rates are lower than what we have seen in recent years, slower growth does not necessarily spell disaster and instead could be indicative of markets that are finally beginning to moderate and even stabilize in these regions,’ Villacorta explained. On the MSA level, southern cities are dominating the top spots in our forecast, with six of the top 10 markets located within the region. Home prices in Dallas and Nashville are predicted to see growth throughout the remainder of 2016, increasing to the tune of 3% to 4% by the end of the year. Major Florida markets are also predicted to continue to rise, with Jacksonville and Orlando growth forecasts around 2.5% by the end of 2016, while homes in Tampa may increase by almost 4% over the next six months. ‘Overall, our forecasting models are predicting the second half of 2016 to be much slower than its start, with all regions forecasted to see very little price change by the end of the year,’ said Villacorta. ‘The Federal Reserve won’t be raising interest rates this summer, and while this will help keep the cost of mortgage lending to a minimum, at least in the short term, there are other key global factors that could spell… Continue reading
Petition launched to scrap EPCs in UK which were imposed by EU directive
A Parliamentary petition has been launched in the UK to scrap energy performance certificates for residential properties now that the country has decided to leave the European Union. The certificates, known as EPCs, were introduced in 2007 after the Housing Act 2004 made it a mandatory requirement that an energy assessment is made on all properties listed for sale in Britain and later this applied to rental properties too. This was done to comply with a European Directive and EPCs were seen as bureaucratic consequence of being a member of the European Union which means all countries had to introduce the certificates. This means that every home that is put on sale or for let needs to be inspected and a certificate issued before it can be advertised. It is estimated this amounts to an annual cost of £100 million to sellers and landlords. It is widely regarded that the resulting energy rating that the certificate assesses is of little help to either buyer or seller and has not proven to reduce energy consumption in any attempt to assist in mitigating the effects on the environment, as was the intention when first conceived by the European Commission. Now, Russell Quirk, chief executive officer of hybrid estate agent eMoov, has launched a Parliamentary petition to bring about the scrapping of EPCs which he believes will streamline the home moving process and save the country millions of pounds. ‘This petition will be the first shot to be fired by the property industry in achieving swift benefit from the EU exit,’ he said, pointing out that if 100,000 signatures are achieved this would mean that Parliament has to debate the issue. Quirk has also contacted the Housing Minister Brandon Lewis MP to ask for his support. Since inception, it is estimated that over 16 million EPCs have been produced and at a consumer cost of over £800 million. ‘I have launched this national petition in order to get rid of EPCs and the unnecessary cost to the consumer of paying for them. When introduced as part of the failed Home Information Pack in 2007 they were widely criticised as pointless and wasteful by the property industry,’ said Quirk. ‘Thousands of inspectors have had to be trained and then re-trained under adapted legislation, forced upon us by an EU directive that, now that we have voted for Brexit, can be unwound. EPCs are of no benefit to anyone and have created a bureaucratic burden on home sellers, landlords and estate agents,’ he added. Continue reading
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
