Tag Archives: united-states
Property sales in top US ski resort of Aspen hit eight year high
Sales in Aspen, regarded as the US’s premier ski resort, have reached an eight year high, and prices are up 3.9% year on year. The data from Knight Frank residential partners Douglas Elliman shows that the resort, which covers four mountains, saw more than 80 properties changing hands in the first nine months of 2015, nine of which were above US$10.6 million. Aspen Mountain itself generated the strongest volume of property enquiries and the highest property prices, with values around US$3,000 per square foot, the report reveals. By comparison, a luxury home on one of the neighbouring mountains of Snowmass, Buttermilk and Highlands ranges from US$1,000 to US$2,000 per square foot. Overall residential prices in Aspen rose by 3.9% in the 12 months to September 2015 and more enquiries have been coming from Chinese buyers. The report explains that each resort has its own distinct appeal. Aspen Highlands is favoured by the locals, Snowmass appeals to families and Buttermilk is considered the best mountain for beginners. Property demand is primarily domestic but international interest is on the rise. Alongside those Europeans seeking a ski retreat, primarily German, French and British, and Australian and Chinese enquiries are strengthening. Aspen is described as a truly year round resort, offering a programme of events from Jazz Aspen, Food and Wine Classic, the Aspen Music Festival and the Aspen Institute’s Ideas Festival in the summer months. The X Games, Wintersköl and World Cup Ski Championships dominate the winter months. The report says all of this helps to put Aspen on the radar of international buyers. Aspen, due to its cooler climate, is also popular with Texans and Californians in the summer months. It adds that the Aspen-Pitkin Co. Airport is located less than four miles from the heart of Aspen and has a more regular service from major carriers than any other regional ski town airport in North America. In the winter, its regular, weekly flights number more than 170. In addition to regular service from Denver, Aspen sees more than 20 flights a week from Chicago and Los Angeles. Continue reading
Pending homes sales in the US up marginally after two months of declines
Pending home sales were mostly unchanged in the United States in October, but shifted marginally higher after two straight months of declines, according to the latest index data. The figures from the National Association of Realtors (NAR), show that gains in the Northeast and West were offset by declines in the Midwest and South. The Pending Home Sales Index, a forward looking indicator based on contract signings, inched 0.2% to 107.7 in October from an upwardly revised 107.5 in September and is now 3.9% above October 2014. The index has increased year on year for 14 months in a row. Lawrence Yun, NAR chief economist, explained that pending sales have plateaued as buyers struggle to overcome a scant number of available homes for sale and prices that are rising too fast in some markets. ‘Contract signings in October made the most strides in the Northeast, which hasn't seen much of the drastic price appreciation and supply constraints that are occurring in other parts of the country. In the most competitive metro areas, particularly those in the South and West, affordability concerns remain heightened as low inventory continues to drive up prices,’ he said. According to Yun, although contract activity has slightly trended downward since the spring, the ongoing strengthening of several local job markets continues to fuel the improved demand for buying that has now pushed existing sales above a five million sales pace for eight consecutive months. ‘Areas that are heavily reliant on oil related jobs are the exception and have already started to see some softness in sales because of declining energy prices,’ Yun added. With demand expected to remain stable through the final two months of the year, Yun forecasts existing home sales are set to finish 2015 at a pace of 5.30 million, the highest since 2006. He pointed out that although further expansion in existing sales is expected next year, ongoing inventory shortages and affordability pressures from rising prices and mortgage rates will likely temper sales growth to around 3% in 2016. Home prices are expected to slightly moderate from a 6% increase in 2015 to 5% next year. ‘Unless sizeable supply gains occur for new and existing homes, prices and rents will continue to exceed wages into next year and hamstring a large pool of potential buyers trying to buy a home,’ said Yun. A breakdown of the figures show that the index in the Northeast rose 4.5% in October, and is now 6.8% above a year ago. In the Midwest the index fell by 1% but remains 3.3% above October 2014. Pending home sales in the South decreased 1.7% in October and are now 0.3% below last October. The index in the West climbed 1.7% in October and is 10.4% above a year ago. Continue reading
New Help to Buy scheme for London will make renting more costly
Monthly costs for purchasers of a new build property using the new London Help To Buy scheme will be significantly less than rental costs of a comparable property, it has emerged. The Chancellor of the Exchequer George Osborn announced that from early the government will increase the upper limit for the equity loan it gives new buyers within Greater London from 20% to 40%. It means that Londoners with just a 5% deposit will be able to get an interest-free loan worth up to 40% of the value of a newly built home. People then need to get a mortgage of up to 55% to cover the rest. On top of this the current restrictions on who can buy a home through shared ownership will be removed from April 2016. Shared ownership allows people to buy a share of a home rather than the whole house and then buy a greater share over time as they can afford to. They pay rent on the rest of the property. Currently, these are allocated in several different ways including criteria set by local councils, for example whether potential buyers work in the local area or if they are already in council housing. Help to Buy Shared Ownership will lift the limits so that anyone who has a household income of less than £80,000 outside London, and £90,000 inside London, can buy a home through shared ownership. Only military personnel will be given be priority over other groups. The scheme will apply across England. People can buy a share between 25% and 75% of a home. The rent on the rest of the property won’t be more than 3% of the amount left. For example, on a house worth £227,000 where the buyer has bought a 40% share, the rent won’t be more than 3% of the remaining 60% – in this case £4,000 a year, or £340 a month. Help to Buy Equity Loans are already open to both first time buyers and home movers on new build homes in England with a purchase price up to £600,000. Currently, if you’re able to pay at least 5% the value of your home as a deposit, the government will lend you up to 20% of the rest of the value of the property, alongside your mortgage of up to 75%. Equity Loan will be now available until 2021 and, to reflect the current property market in London, from early 2016 the government will increase the upper limit for the equity loan it gives new buyers within Greater London from 20% to 40%. Ray Boulger, senior technical manager at John Charcol, explained that monthly costs for buyers of a new build property using the new London Help To Buy scheme will be significantly less than rental costs of a comparable property, massively incentivising Londoners to find the 5% deposit and other costs. He also pointed out that the London HTB scheme will also result in much lower monthly… Continue reading
