Tag Archives: yahoo
Buyers of prime country property in Ireland favour Cork and Wicklow, a new report shows
Cork and Wicklow are the most popular rural locations for country home buyers in the €1 million plus price bracket in Ireland, new research shows. According to the analysis from property consultants Savills Ireland, this suggests that many of those seeking the benefits of country living are also looking to remain within arm’s reach of major cities, be it for shopping and entertainment purposes, prestigious schools or access to good road links and international airports. Indeed, Savills sales data support this view, with a disproportionate number of transactions located in Dublin and neighbouring counties, and along national arterial routes. The report also highlighted that while domestic buyers account for a majority of Savills country homes sales, the single biggest deal in each of the last three years was a cash purchase from the UK or the United States. In addition, Savills noted a greater level of interest from American applicants, many of whom are looking to purchase a piece of family heritage here in Ireland. High net worth individuals from the United Arab Emirates and the Far East are also now beginning to show an interest in the Irish market. ‘Buyers at the top end of the price spectrum highlight location as a top priority. However, this group tends to be on the lookout for much grander homes with secondary accommodation and staff quarters, overlooking water, with 100 or more acres of mature parklands and, in many cases, adjoining equestrian facilities,’ said Harriet Grant, Savills head of country homes. Grant also reported that, unsurprisingly, some 85% of Savills country homes sales over the last three years have been cash transactions. ‘Typically, country homes buyers are not reliant on mortgage finance,’ she pointed out. ‘In reality, a trophy estate will only ever be attainable to a small minority, not only because of the higher price point, but also due to running costs. Therefore, it is little surprise that such a high percentage of Savills country homes sales over the last three years have been cash transactions,’ Grant explained. She added that deals that are being financed with a mortgage tend to involve existing home owners trading up and are generally smaller in value, averaging €520,000 in 2015, compared with almost €1 million for cash buyers. Continue reading
Property prices in metro areas in the US continue their upward trend
An uptick in sales activity amidst meagre supply levels upheld the trend of unwavering property price gains in an overwhelming majority of metro areas in the United States during the first quarter of 2016. It means that the median existing single family home price increased in 87% of markets with 154 out of 178 metropolitan statistical areas showing gains based on closed sales in the first quarter of the year compared with the same quarter of 2015, according to the latest data from the National Association of Realtors. Some 24 areas or 13% recorded lower median prices from a year earlier but there were more rising markets in the first quarter compared to the fourth quarter of 2015, when price gains were recorded in 81% of metro areas. The data also shows that 28 metro areas or 16% experienced double digit increases in the first quarter of the year, a slight decrease from the 30 metro areas in the fourth quarter of 2015 while 51 metro areas or 28% experienced double digit increases in the first quarter of last year. Lawrence Yun, NAR chief economist, pointed out that home prices chugged along at a robust pace in most metro areas during the first three months of 2016. ‘The solid run of sustained job creation and attractive mortgage rates below 4% spurred steady demand for home purchases in many local markets,’ he said. ‘Unfortunately, sales were somewhat subdued by supply and demand imbalances and broadly rising prices above wage growth. As a result, the path to home ownership so far this year remains strenuous for a segment of prospective buyers in the most competitive areas,’ he added. The national median existing single family home price in the first quarter was $217,600, up 6.3% from the first quarter of 2015 and the median price during the fourth quarter of 2015 increased 6.7% from the fourth quarter of 2014. Total existing home sales, including single family and condos, rose 1.7% to a seasonally adjusted annual rate of 5.29 million in the first quarter from 5.2 million in the fourth quarter of 2015 and are 4.8% higher than the 5.05 million pace during the first quarter of 2015. ‘In spite of deficient supply levels, stock market volatility and the paltry economic growth seen so far this year, the housing market did show resilience and had its best first quarter of existing sales since 2007,’ Yun explained. ‘The demand for buying is there, but unless the stock of new and existing homes for sale increases significantly especially in several markets in the West, the housing market will struggle to reach its full potential,’ he pointed out. At the end of the first quarter, there were 1.98 million existing homes available for sale, which was below the 2.01 million homes for sale at the end of the first quarter in 2015. The average supply during the first quarter was 4.3 months, down from 4.6 months a year ago. ‘Current home owners… Continue reading
Buy to let property returns up almost 10% year on year in England and Wales
Total returns for buy to let property in England and Wales rose to 9.57% in the 12 months to the end of March, according to the latest buy to let index to be published. Overall buy to let portfolios fell 0.31% month on month, were up by 2.31% quarter on quarter, and by 9.57% year on year, the data from the Property Partner residential market index shows. The growth over 12 months has been led by London where buy to let returns increased by 16.49%, followed by the East of England with a rise of 13.18%, the South East 12.1% and the East Midlands 8.59%. The North West was not far behind with a rise of 8.44% and the South West at 8.42%. The West Midlands saw a rise of 6.08%, Yorkshire and Humberside 4.51% and the North East 2.57%. According to Rob Weaver, Property Partner’s director of investment the strong growth in the year to March 2016 was probably affected by property investors rushing to beat April’s additional home stamp duty deadline. ‘This was especially true of London, where annual returns were in double digits, reaching an eye-watering 16.5%. The East was strong too, and from first hand experience the Northern Powerhouse regeneration plan is boosting investment activity in the North West and in particular Manchester,’ he said. He pointed out that monthly figures can be volatile. ‘What’s clear is that regional disparities in the housing market are widening, with Yorkshire and Humberside and the North East regions looking fragile,’ he explained. He also pointed out that property investors are showing caution ahead of the referendum in June on the future of the UK’s position in the European Union. ‘But the fundamentals of high employment, wage growth, cheap borrowing and the chronic shortage of supply remain in place and are positive,’ he added. The index is the first regular dataset to combine rental income and capital growth to show the total rate of return of residential property investments over time. It is based on research carried out by the property crowdfunding platform Property Partner of Land Registry and ONS data. Continue reading
