Tag Archives: sales
US holiday home sales soared in 2014, annual report shows
Holiday home sales in the United States soared 57.4% in 2014 to above their most recent peak level in 2006, while investment purchases fell for the fourth straight year, new data shows. The annual survey by the National Association of Realtors reveals that holiday home sales increased to an estimated 1.13 million last year, the highest amount since NAR began the survey in 2003. Investment home sales in 2014 decreased 7.4% to an estimated 1.02 million from 1.10 million in 2013. Owner occupied purchases fell 12.8% to 3.23 million last year from 3.7 million in 2013. Lawrence Yun, NAR chief economist, described the holiday sales market as having seen astonishing growth, nearly doubling the combined total of the previous two years. ‘Affluent households have greatly benefited from strong growth in the stock market in recent years, and the steady rise in home prices has likely given them reassurance that real estate remains an attractive long-term investment,’ he said. ‘Furthermore, last year’s impressive increase also reflects long term growth in the numbers of baby boomers moving closer to retirement and buying second homes to convert into their primary home in a few years,’ he added. Overall holiday home sales accounted for 21% of all transactions in 2014, their highest market share since the survey was first conducted. The portion of investment sales fell to 19% compared to 20% in 2013 and owner occupied purchases declined to 60% from 67% in 2013. ‘Despite strong rental demand in many markets, investment property sales have declined four consecutive years to their lowest share since 2010 as rising home prices and fewer distressed properties coming onto the market have further reduced the number of bargains available to turn into profitable rentals,’ said Yun. The median sales price of both holiday and investment homes declined in 2014. The median holiday home price was $150,000, down 11.1% from $168,700 in 2013. The median investment home sales price was $125,000, down 3.8% from $130,000 a year ago. According to Yun, the decrease in vacation and investment sales prices is likely due to the increase in holiday and investment buyers purchasing condos and townhouses, which contributed to a decline in the median size of 200 square feet for both. Additionally, the rise in holiday home buyers purchasing distressed properties and buying in the South, where home prices are often lower, contributed to the overall decline in the sales price of vacation homes. The share of holiday home buyers who paid in cash fell to 30% from 38% in 2013. Investment buyers who paid in cash decreased to 41% from 46% a year ago. Of buyers who financed their purchase with a mortgage, nearly half, 48%, of holiday home buyers and 41% of investment buyers financed less than 70% of the purchase price. The data also shows that 45% holiday homes and 44% of investment homes purchased in 2014 were distressed properties, either… Continue reading
Asking prices up across UK led by Scotland and East Anglia
Asking prices have risen across all regions in England, Scotland and Wales over the last month, reflecting widespread positive sentiment across the UK, the latest index suggests. However, higher prices are also tempting vendors to put their properties on the market and the supply of property for sale in London, for example, has overtaken demand, according to the latest index from Home.co.uk. This is shown by a steep rise in the typical time on market which is currently 71 days, some 24 days longer than in March 2014, the report points out, although supply rises in other regions are much more muted. Asking price rises are led by East Anglia and Scotland, both with a monthly rise of 1.4%, and annual rises of 6.2% and 8% respectively. The report also says that an optimism abounds as even in the least well performing areas of the North East and Wales, prices have risen 0.4% and 0.3% respectively since February. A breakdown of the figures show that asking prices in London prices increased a further 2.1% despite rising supply and are up 31% year on year. While asking prices have increased by 1.1% overall in England and Wales during the last month but the average annual appreciation has fallen to 6.8%. Overall, the current mix-adjusted average asking price for England and Wales shows that properties on the market are valued 6.8% higher than they were in March 2014. The typical time on market for England and Wales is now 119 days, which is eight days less than this time last year, and shows that the market continues to gain momentum overall. ‘House prices are surging again, over and above seasonal expectations. The key market drivers of low mortgage interest rates and low supply remain very much in place,’ said Doug Shephard, Home.co.uk director. He pointed out that so far, the market correction in prime central London has not affected sentiment elsewhere in the country, and the flow of mortgage credit to homebuyers and property investors alike continues unabated. ‘We maintain that the best prospects for stable growth this year and next probably lie in regions such as East Anglia, East Midlands, the South West, West Midlands and perhaps Yorkshire. It may be argued that these regions are still in the throes of the recovery phase, as supply remains low and prices have not yet risen out of reach,’ he explained. ‘There are also further indicators that the recovery will, at last, lift the northern regions out of the misery of price stagnation. Those markets are gaining momentum and above inflation price rises look highly likely over the coming months,’ he added. He also pointed out that while prospects for price growth are poor for prime central London this year as an abundance of unsold stock has been whittling away at property values, for the time being, prices do appear to be stabilising. ‘The investment outlook for Greater London remains mixed but will slowly turn… Continue reading
Supply of Help to Buy homes falls by over 7% in a year
The supply of homes available under the UK’s flagship Help to Buy scheme has declined by 7.4% in a year and the average prices has risen by 5.5%. The worst affected area is Stockport where the number of available homes has fallen by 24.3%, according to new research from property firm Zoopla. The analysis of properties for sale in England and Wales up to a value of £600,000 also shows that on a regional basis the biggest fall in properties eligible for Help to Buy has been in the East of England, with a 12.3% reduction in suitable stock on the market, while average prices have climbed 6.1% over the same period. Also, compared to March 2014, there are now 16.9% fewer properties on the market in Rochdale that meet the scheme’s criteria, and 15.6% less in Huddersfield. Further south, the number of properties for sale in Worcester, Cheltenham and Exeter that qualify for Help to Buy support has increased by 5.4%, 3.3%, and 3.2% respectively in the past 12 months. In London, the typical value of a property qualifying for Help to Buy has risen by 11.7% since March 2014 and of all London boroughs, Southwark, Lambeth, Waltham Forest and Newham have seen the greatest annual rise in supply of homes with a rise of over 15%. ‘The Help to Buy scheme was intended as a leg up for first time buyers, but in some areas that footrest has since been pulled from under their feet,’ said Lawrence Hall of Zoopla. ‘Greater demand hasn’t been met by greater supply of homes on the market, and instead the soaring price growth of the past year appears to have airlifted many properties out of the starter home sector,’ he explained. ‘The pool of homes on the market within reach of Help to Buy assistance needs to expand, or this pinch on supply will continue to inflate prices at the bottom rungs of the ladder,’ he added. Continue reading
