Tag Archives: sales
Sales and prices up in Canadian housing market, latest index shows
National home sales in Canada increased by 4.1% from February to March and the average sales price is also going up but slewed by growth in Vancouver and Toronto, the latest index report shows. But the data from the Canadian Real Estate Association (CREA) also shows that while the national average sale price rose 9.4% on a year on year basis in March, excluding Greater Vancouver and Greater Toronto, it increased by 2.4%. March sales were up from the previous month in nearly two thirds of all local markets, led by Greater Vancouver, Fraser Valley, Calgary and Edmonton. Despite the monthly rebound, Calgary and Edmonton sales came in below the 10 year average for the month of March. ‘Low mortgage interest rates are good news for affordability as we head into the spring home buying season. This spring should see buyers coming off the sidelines in places where winter was anything but mild,’ said CREA president Pauline Aunger. According to Gregory Klump, CREA’s chief economist, Greater Vancouver and the GTA are really the only two hot spots for home sales and prices in Canada at present. ‘Price gains in these two markets are being fuelled by a shortage of single family homes for sale in the face of strong demand. Meanwhile, supply and demand for homes is well balanced among the vast majority of housing markets elsewhere across Canada,’ he explained. Year on year price gains for single family homes in Greater Vancouver and Greater Toronto have exceeded those in other housing markets tracked by the MLS® HPI throughout the first quarter of 2015, the data reveals. Actual activity in March stood 9.5% above levels reported in March 2014 and slightly above the 10 year average for the month. March sales failed to lift activity recorded during the first quarter above its 10 year average. First quarter sales were below their 10 year average in most local housing markets. The number of newly listed homes rose 1.8% in March compared to February. The rebound in Greater Toronto more than offset the continuing pullback of new supply in Calgary, where it had climbed sharply toward the end of last year but now stands at a multiyear low. The national sales to new listings ratio was 53.9% in March, up from 52.7% in February and 50.4% in January. A sales to new listings ratio between 40 and 60% is generally consistent with balanced housing market conditions, with readings above and below this range indicating sellers’ and buyers’ markets respectively. The ratio was within this range in about 60% of all local housing markets in March. The number of months of inventory is another important measure of the balance between housing supply and demand. It represents the number of months it would take to completely liquidate current inventories at the current rate of sales activity. There were 6.1 months of inventory on a national basis at the end of February 2015, down from 6.3 months in February and… Continue reading
Prime central London rental market see increased demand
Interest in the prime central London rental market has intensified in recent months as buyers become cautious prior to the election, and regulations surrounding mortgage lending take hold, a new report suggests. The proportion of those living in private rented accommodation has risen in recent years and this is partly a reflection on affordability, with rents increasing by just 1.4% when the effects of inflation are removed, according to the analysis from Kay & Co. It found that Bayswater and Marylebone offer family homes at significantly lower prices than other prime London locations and says that a family living in these areas could save over £44,000 a year on a 2,500 square foot home. Overall the prime central London lettings market experienced a relatively strong year in 2014. Annual growth in average rents returned to positive territory, recording the highest increase in rental values since 2010. However, the level of demand for rental properties was more subdued than in 2013 but there was certainly more interest in the latter half of the year. This could have been a result of households who were in the market to purchase a home awaiting the outcome of the general election and lenders becoming more cautious, the report explains. Weekly rents achieved averaged £882 per week across prime central London in 2014, an annual rise of 7% and, compared to the 2008 peak in the sales market, average weekly rents were 11.9% higher in 2014. The average weekly rent in the fourth quarter of 2014 had risen to £904 per week for prime central London. In comparison, the neighbourhoods of Bayswater and Marylebone offer more affordable rental stock within prime central London, with weekly rents in 2014 averaging £676 and £789 per week respectively. The performance of the lettings market in prime central London, including Bayswater and Marylebone, vastly outperformed Greater London as a whole in 2014. Average rental values across the capital registered 2.4% growth over the year based on the revised index of private housing rental prices by the Office of National Statistics. A breakdown of performance by property type in 2014 shows that flats performed better than houses across prime central London in 2014 in terms of rental growth. Average weekly rents for flats increased by 7.8%, compared to 5% for houses. The number of properties let in prime central London fell by 5.4% in 2014 compared to the previous year. A quarterly breakdown, however, reveals that it was the start of the year that saw considerable reductions in the volumes of properties let and this became less severe as the year progressed. By the fourth quarter of 2014, the annual change in the number of lets had increased by 6.7%. This coincided with increased uncertainty regarding the outlook for capital values in the prime central London sales market. There was also a simultaneous and continuous increase in average rents achieved each quarter in… Continue reading
New Zealand sees highest volume of house sales for month of March since 2007
Residential property sales in New Zealand in March were up 27.6% in March and 20.3% compared to a year ago, according to the latest index from the Real Estate Institute of New Zealand. This the highest March sales volume since 2007 and prices are also going upwards with the national median price for March $475,000, an increase of $35,000 or 8% compared to March 2014 and an increase of $45,000 or 10.5% from February. However, it is clear that a strong market in Auckland is leading the growth. Excluding the impact of the Auckland region, the national median price was flat compared to February at $350,000 and $5,000 or 1.4% higher compared to March 2014. ‘March is the strongest sales month of the year, with almost 1,400 more sales than for any of the past 12 months. While the increase in the number of sales is more or less spread across the country, the movement in the national median price is almost entirely an Auckland effect,’ said REINZ chief executive Colleen Milne. ‘Auckland has posted a record number of auction sales in March, with almost one in two sales by auction. Our data shows that on a suburb by suburb basis auctions sell for a premium compared to other sales,’ she pointed out. ‘We also see in the data a noticeable spike in the number of sales over $1 million in Auckland. These two effects explain, at least in part, the jump in the national median and Auckland median prices for March, although the underlying demand pressures remain and supply continues to be restrained by low numbers of new listings,’ she explained. ‘Across the rest of the country, sales volumes and median prices are far better balanced, with a number of regions reporting good sales numbers, good listings and plenty of activity. The national median price, excluding Auckland, has remained at $350,000 for the past two months, indicating that supply and demand are far more balanced outside of Auckland,’ she added. All regions apart from Central Otago Lakes recorded an increase in sales volume compared to February, with Auckland recording the largest of 56%, followed by Taranaki with 50% and Southland with 39%. In comparison with March 2014, all regions recorded increases in sales volume, with Waikato/Bay of Plenty recording the largest, of 41%, followed by Central Otago Lakes with 27% and Hawkes Bay and Manawatu/Wanganui with 23% each. Central Otago Lakes recorded the largest percentage increase in median price compared to March 2014, at 21%, followed by Auckland at 13.0% and Taranaki at 11%. Compared to February, Central Otago Lakes recorded the largest percentage increase from February, at 13%, followed by Auckland at 7% and Canterbury/Westland at 3%. The REINZ Stratified Housing Price Index, which adjusts for some of the variations in the mix that can affect the median price, is 9.5% higher than in March 2014, at 4,340.9. The Auckland Index rose 20% compared to March 2014, the Christchurch Index 5% and… Continue reading
