Tag Archives: middle-east
Canadian housing market sees largest year on year fall in sales since 2013
National home sales fell 1.3% from June to July in Canada, the third month in a row that transactions have fallen, and fell by 2.9% year on year, the largest since 2013. The data from the Canadian Real Estate Association (CREA) also shows that the national average sale price was up 9.9% in July year on year but when Greater Toronto and Greater Vancouver are excluded from the figure this dropped to 7%. Sales activity was down from the previous month in slightly more than half of all markets in July, led by Greater Vancouver and the Fraser Valley. Transactions in these two markets peaked in February of this year, and have since then dropped by 21.5% and 28.8% respectively. According to CREA president Cliff Iverson much of the national sales decline in recent months reflects slowing activity in B.C.’s Lower Mainland area. ‘National sales and price trends continue to be heavily influenced by a handful of places in Ontario and British Columbia and mask significant variations in local housing market trends and conditions across Canada,’ he explained. Gregory Klump, CREA’s chief economist, said that the figures suggest that sales are being reined in by a lack of inventory and a further deterioration in affordability. He pointed out that the new 15% property transfer tax on Metro Vancouver home purchases by foreign buyers took effect on 02 August so it will take some time before the effect of the new tax on sales and prices can be observed. A breakdown of the figures shows that actual, not seasonally adjusted, sales activity was down 2.9% year on year July 2016, the first annual decline since January 2015 and the largest since April 2013. In line with softening activity in the Lower Mainland, year on year increases have been losing momentum since February 2016. Sales were down from levels one year earlier in about 60% of all Canadian markets, led by Greater Vancouver, the Fraser Valley, Calgary and Edmonton. The number of newly listed homes rose by 1.2 percent in July 2016 compared to June. While new supply climbed in fewer than half of all local markets, increases in Greater Vancouver and the Fraser Valley, Greater Toronto, Calgary and Edmonton outweighed declines in smaller markets. With sales down and new listings up, the national sales to new listings ratio eased to 61.6% in July 2016, its second monthly decline following its peak of 65.3% in May. A sales to new listings ratio between 40% and 60% is generally consistent with balanced housing market conditions, with readings below and above this range indicating buyers’ and sellers’ markets respectively. The ratio was above 60% in about half of all local housing markets in July, virtually all of which continue to be located in British Columbia, in and around the Greater Toronto Area and across Southwestern Ontario. The CREA report points out that the number of months of inventory is another important measure of the balance… Continue reading
Property sales and prices up in Spain in first half of 2016
Residential property sales in Spain increased by almost 20% in the first half of this year suggesting that the real estate market recovery is well underway. The latest figures from the General Council of Notaires shows that transactions were up by 19.6% in the first six months of 2016 to a total of 225,551 sales, and prices increased by 6.1% year on year. The data reveals that new home sales are not boosting the recovery and indeed falling. Sales of non-new homes increased by 19.29% year on year, accounting for 68.1% of all the homes sold but new homes sales fell 13.6%. This upward trend continued in June, when home sales grew by 7.1%, year on year, again driven by the transactions on second hand homes, which increased by 11.5% reaching a total of 29,052 units, while transactions on new housing registered a decline of 33.4%, with a total of just 2,751 sales. The price of an average home increased by 6.1% to €1,418 per square metre. But new homes cost more and this could explain why sales are falling. The average price of a new build was €1,886, some 12.7% more than second hand homes. The data also shows that in June some 44.7% of home sales were financed through a mortgage with the average capital loaned €128,480, a slight increase, of 0.4%, over last year. The cost of renting a home in Spain is also increasing, up by 2.4% in the second quarter of 2016 taking the average to €7.41 per square meter per month, according to figures from property portal Fotocasa. It means that after eight years of falling, residential rents have now been increasing since 2015. Beatriz Toribo, Fotocasa head of research, a growth in demand is boosting rental values which are now up by 4.8% year on year. A breakdown of the figures show that rents increased in 15 regions in the second quarter of the year compared to the previous quarter and in 16 regions year on year. The highest annual increase to data was recorded in May this year when rental prices increased by 5%. But the recovery still has some way to go as average rents are now 26.8% lower than they were at the peak of the market in May 2007 when they were €10.12 per square meter per month on average. But in three regions prices are down even more. Monthly rents are some 39.6% lower than peak in Aragon, 35.2% lower in Castilla La man cha and 33.7% down in Cantabria. The most expensive rents are in Madrid at €10.36 per square meter per month, followed by Catalonia at €10.24 and then the Basque Country at €10.16. The most affordable rental prices are in Extremadura at €4.56 and Castilla La Mancha at €4.69. Continue reading
Survey reveals over a quarter of UK tenants felt rushed into an agreement
Over a quarter of tenants in the UK feel that they were rushed into entering their tenancy agreement, particularly in London, a new survey has found. Overall 27% felt rushed and more than half regretted renting their current property, according to the research commissioned by Ocean Finance. Such is the competition in the rentals market that 1.5 million tenants, some 8% of renters, signed their tenancy agreement on the day they viewed the property. One in 10 said the turnaround between viewing and entering the tenancy was two to three days, and a similar number said they signed the agreement between four and seven days after the viewing. The survey found that 18 to 24 year olds are the most likely to act hastily when renting with 46% saying that they felt rushed into signing. By contrast, just 17% of those aged over 55 felt pressured to sign quickly to secure the property. Tenants in London felt under the most pressure to sign quickly to secure a house or flat with 40% rushing into it but renters in Northern Ireland also felt under the same amount of pressure. By contrast, just 12% of tenants in Wales felt the pressure to sign. Riddled with regret Of those tenants that say they felt under pressure to sign their agreement, half say that they wish they hadn’t done so with 10% saying the property is too cold, 9% that it was too small and 9% also saying it needed work done on it. Some 8% regretted their decision because they did not like the area, 6% said there was not enough garden, 4% felt it lacked character and 4% thought it was too old fashioned while 2% found it was too far away from amenities. ‘Our figures demonstrate just how hard it is to rent a property across much of the UK. The best properties are often snapped up within hours or even minutes. As a result, would be tenants feel under pressure to sign quickly to secure the property,’ said Ian Williams, Ocean’s spokesperson. ‘Sadly, half of those go on to regret their haste, finding themselves in a home that they don’t like or which doesn’t suit them,’ he added. Continue reading
