Tag Archives: real estate
Sellers reduce asking prices in Spain as the market become more realistic
Sellers in Spain are becoming more realistic about prices and have reduced asking values which is seen by experts as a good move in terms of keep in the real estate recovery going. Asking prices fell by 0.2% to €1,624 per meter in April, according to data from property portal Fotocasa, compared to a year ago. Meanwhile the latest house price index from the Government shows that prices were up 2.4% in the first quarter of 2016 year on year and up 0.2% quarter on quarter. The Fotocasa asking price index has been fairly stable for the last year, with prices never varying more than 1% either up or down. ‘House prices will continue to go in different directions during 2016,’ said Beatriz Toribio, head of research at Fotocasa. ‘Whilst in some areas of the country prices are stabilising or even rising, in others they continue to fall hard. This is a consequence of the crisis the sector has lived through, which has left a market of two or more speeds that is ever more obvious,’ Toribio added. Since the peak of the market in 2007 average house prices have fallen by 45% but there is some regional variation. Peak to present prices are down by 50.5% in Murcia, 47.5% in the Valencian Region, 47% in Catalonia, 43.9% in Madrid, and 42.6% in Andalusia. The Government figures, however, show that house prices are down 29% since the peak which it outs at the first quarter of 2008 and it adds that price bottomed out in the third quarter of 2014. Prices have increased the most in the Balearics with growth of 9.6%, followed by Catalonia up 4.9%, Madrid up 4.2%, Extremadura up 3.7%, Galicia up 2.6%, the Valencian region up 2.4% and the Canaries also up by 2.4%. The latest mortgage figures show that lending volumes are also up which means more people can buy a home. The data from the National Statistics Institute on Friday reveals that the number of new mortgages listed in the property registers in Spain stood at 22,983 in March, up 4.5% over the same month in 2015. In more good news for the Spanish property market the latest report from the General Council of Notaries show that foreign demand rose by 12.9% in 2015. More than half, 52%, were people buying a holiday home while 48% were foreigners living in Spain. The British were the biggest group of foreign buyers with 21% of the market, followed by the French at 9%, Germans at 7.5%, Belgians at 6% and Italians at 5.5%, the data also shows. The Balearics is the most popular part of Spain with overseas buyers with foreign purchases amounting to 44% of the market, with the Canaries at 39%, Valencia at 37% and Murcia and Andalusia both at 25%. Foreign demand growth was strongest in regions with small markets, where even a modest increase in foreign demand translates into a big increase in percentage terms. Growth was biggest… Continue reading
Property growth sluggish in the US, latest index data suggests
National property growth in the United States increased by a moderate 0.6% quarter on quarter but values are barely rising with variations according to location. The home data index from Clear Capital shows that in the Northeast and Midwest regional quarterly growth rates were sluggish at only 0.2% while the South saw a 0.7% rise. These rates come with little to no change from the previously reported quarterly growth rates, all within 0.1% of the figures from the previous month. The firm believes that the current picture is being led by the West where sales have increased 0.3% from 0.9% to 1.2% in a month and it says that this momentum shift is setting the pattern for another strong summer growth season as the region begins to dominate regional performance once again. The continued dominance of the West is easy to see on the firm’s list of Highest Performing Major Metro Markets, where nine of the current top 15 are in the West. Seattle continues to lead the nation with 2% growth over the last quarter, an increase of 0.2% since the previous index, while quarterly growth in Sacramento increased 0.3% to 1.5% quarter on quarter and the rest of the Western top markets all reported at least 1.2% growth over the last quarter. However, the condition of each individual market in the region is varied. Portland, San Jose, and Denver have all surpassed their previous peak market values from before the crash, with Seattle fast approaching its own benchmark. However, homes in Las Vegas are fetching just over half of peak market values from 10 years ago. The index report also points out that the current distressed property saturation rates in cities like Sacramento and San Diego have improved by 50% or more, illustrating a drastic improvement in the overall health of the market, and yet both markets have quite a way to go to recovering all market value lost during the crash. ‘Real estate market headlines have repeatedly documented the strong, potentially bubble like recovery of the West over the past couple years, and this continued trend of performance doesn’t appear to be going away just yet,’ said Alex Villacorta, vice president for research and analytics at Clear Capital. ‘However, it’s important to remember just how varied the standing of each of these Western metro’s recoveries remains. While the West as a whole has seen incredible performance since the lows of 2011, comparisons between individual markets like Denver and Las Vegas can be a sobering reminder of the devastating effects of the crash and that some markets still have a long way to go in terms of regaining lost value,’ he explained. ‘Conversely, those markets that are reaching new market highs are worth keeping a close eye on since the speed at which those recoveries have occurred is clearly unsustainable in the long term,’ he added. Continue reading
Land agent suggests UK govt target of a million new homes by 2020 is achievable
Land agent Aston Mead has hit back at those who have doubted the ability of the UK to build a million new homes by 2020. The pledge is at the heart of the government’s landmark Housing and Planning Bill, which received Royal Assent earlier this month. However, a recent survey of owners and directors of 389 house builders across England indicated that just over half, some 51%, thought the target would not be met. Aston Mead land planning director Adam Hesse said there is a danger that the planning pessimists out there will create a self-fulfilling prophecy. ‘A million homes by 2020 is perfectly possible as the Home Builders Federation have stated quite clearly. But it will need conviction and commitment, as well as further government policies in favour of development, and help to speed up the planning process,’ he explained. He pointed out that there have already been huge increases in output, with build rates on large sites doubling since 2010. There were more than 180,000 new homes delivered in 2014/2015, with this year’s figure expected to be higher still. ‘By 2019 the big companies will be building double what they did six years ago. Now we need to speed up the momentum even further, so that we ensure we reach the target of one million new homes by 2020,’ he added. Despite his optimism, Hesse believes that the industry needs to see more land coming through the planning system, and processes that support both large and smaller house builders. ‘Several significant advances have happened already. Brownfield sites will now automatically be approved for building, with £10 million worth of funding to help local authorities prepare them. There are also plans to relax the planning rules for smaller house builders, enabling them to gain automatic planning permission on suitable sites. And changes to the section 106 agreement will enable developers to provide affordable homes to buy, instead of affordable homes for rent,’ Hesse explained. He added that it is local councils, who are the largest landowners in the country, which will be key to the success of this project. ‘They must get up-to-date housing plans in place, ensuring that they are robust and evidence-based,’ he said. He also pointed out that councils should review their planning application process and the conditions attached to planning which represent such a major challenge for developers. Plus they need to streamline their planning processes and improve communication so that once approved, building can get underway quickly. ‘For their part, house builders are already investing in their supply chains and have taken on tens of thousands of new workers to ensure there is the capacity and skills required. All we need now is the conviction and commitment to carry it off,’ Hesse concluded. Continue reading
