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Home sales in Canada up 0.8% in first weeks of 2016
National home sales in Canada rose by 0.8% from January to February while average prices were up by 16.4% year on year, the latest index shows. But prices fell in some regions, most notably British Columbia and Ontario with a fall of 1.4%, according to the data from the Canadian Real Estate Association also shows. The number of newly listed homes edged up by 0.5% from January to February and the CREA report says that the Canadian housing market has tightened but remains balanced overall. The monthly increase lifted national sales activity to the highest level since June 2007 but a greater number of local housing markets posted a monthly decline in sales activity than posted a monthly increase. However, the latter accounted for a larger share of national transactions. The Greater Toronto Area (GTA), Okanagan Region and Fraser Valley made the largest contribution to the monthly increase in national sales activity, offsetting monthly sales declines in Edmonton, Greater Moncton and Montreal. ‘Two of Canada’s hottest housing markets look set to stay that way heading into the spring home buying season. Meanwhile, other major urban markets elsewhere in Canada are well balanced or have ample supply,’ said CREA president Pauline Aunger. Actual, not seasonally adjusted, sales activity rose 18.7% year on year in February, some 12.7% above the 10 year average for the month. Activity increased above year ago levels in about three quarters of all local markets. BC’s Lower Mainland, the GTA and Montreal contributed most to the year on year increase in national activity. Gregory Klump, CREA chief economist pointed out that the number of single family home sales above one million dollars is rising in Greater Vancouver and the GTA. ‘Tightened mortgage regulations apply to homes selling above $500,000 and below a million dollars. The tighter regulations combined with a short supply of single family homes will restrain transactions below one million dollars,’ he explained. ‘If recent trends continue, home sales above one million dollars will account for a greater share of activity and will further fuel year on year average price increases in these markets. Meanwhile, price growth will remain more modest in other housing markets that don’t have an ongoing or developing supply shortage like the kind we’re seeing in the Lower Mainland of British Columbia or around the GTA,’ Klump added. The number of newly listed homes edged up 0.5% in February 2016 compared to January. The rise in new listings in the Lower Mainland of British Columbia, York and Mississauga Regions of the GTA and Hamilton-Burlington helped to push the national figure higher. Monthly increases in new listings in these housing markets were offset by monthly declines in Central Toronto, Calgary and Montreal. The national sales to new listings ratio rose to 59.5% in February 2016 versus 59.3% the previous month. This marks the ratio’s highest reading since November 2009. A sales to new listings ratio between 40% and 60% is generally consistent with balanced housing market… Continue reading
Sales prices still rising in Miami at beginning of 2016, latest data shows
Sales prices in Miami continued to rise in January as existing single family homes and condominiums sold close to list price, according to the latest data from real estate agents. The median sales price for single family existing homes rose 13.7% year on year in January from $237,500 to $270,000, according to the figures from the Miami Association of Realtors, but single family home prices remain at 2004 levels despite four years of increases. The median sales price for existing condominiums increased 8.8% to $205,000 from $188,500 a year ago. Miami-Dade County existing condo prices have risen in 55 of the last 56 months, a period encompassing more than four and a half years. ‘On the heels of a historic 2015 that saw Miami real estate register its most-ever single-family home sales and its third-most total residential transactions, Miami properties remain in high demand,’ said Mark Sadek, 2016 chairman of the association’s board. ‘Properties are selling for higher prices and near asking. While total residential sales decreased in January, single family home and condominium sales remain consistent with historic averages,’ he added. Total existing Miami-Dade County residential sales, which posted a record year in 2013 and near record years in 2014 and 2015, decreased 12.1% from 2,043 sales in January 2015 to 1,796 last month. January 2016’s total sales are in the range of Miami sales during the past five Januarys. Miami-Dade County single family home transactions were 14.4% lower year on year in January, from 963 to 824. Existing condominium sales declined 10% in January 2016, from 1,080 to 972. ‘Strong sales are important for a healthy residential real estate market, but it is not sustainable to set a new all-time sales record each year. Miami-Dade County’s five years of record sales have been unique in the US real estate market. It is anticipated Miami will continue in a sales range consistent with a strong market,’ explained Teresa King Kinney, the association’s chief executive officer. Miami-Dade has continued to experience a significant year on year decrease in distressed sales. Increased competition from new condominium construction has also played a role in the lower total residential sales. Only 22% of all closed residential sales in Miami were distressed last month, including REO (bank-owned properties) and short sales, compared to 34.9% in January 2015. Short sales and REOs accounted for 4.4% and 15.7% respectively, of total Miami sales in January. Short sale transactions dropped 50% year on year while REOs fell 42.2%. Single family home sales increased 18.3% year on year in January in the $250,000 to $400,000 sector, growing from 241 to 285. This sector represented about 34.6% of all total single family home sales in January 2016. Existing condos priced at $150,000 to $300,000 range saw a 25.1% rise in January sales, increasing from 299 to 374. The median days on the market for all Miami properties increased in January. New mortgage disclosure rules, known as the TILA-RESPA Integrated Disclosures (TRID), could be playing a… Continue reading
Cost of getting on the rental property ladder in UK set to soar, research suggests
With many private rental sector landlords in the UK requiring a deposit of four weeks’ rent getting on the rental ladder could present similar challenges in terms of cost as buying a home, new research suggests. It says that the cost of the average rental deposit is estimated to grow by 40% by 2026 to £1,111, more than the growth of the average monthly rent which is estimated to increase by 28% over the same period. This will mean that the average monthly rental deposit will be 70% of the average monthly salary, however there will be considerable regional variations, according to the research carried out on behalf of financial comparison website money.co.uk by the Cebr (Centre for Economics and Business Research). In London for example, the average rental deposit is predicted to rise to £2,733 by 2026, amounting to 120% of the average monthly salary, up from 99% in 2015. Deposits are predicted to rise sharply across the whole of the South of England. In the South East the average deposit is estimated to hit £1,469 in 2026, representing 83% of the average monthly salary at £1,761, up from 72% in 2015. In the South West the average deposit is estimated to represent 80% of median monthly earnings at £1,437 by 2026, up 14% from 66% of the average salary in the region in 2015. The research also suggests that based on recent trends, by 2026 an estimated 68% of all deposits requested will be at least six weeks’ rent. This means landlords will be demanding a lot more money from tenants before they sign a tenancy agreement. Average monthly rent is due to increase by 28% by 2026, some 8% higher than the increase in average salaries over the same period which are set to grow by 20% by 2026. The largest increase in rents between 2015 and 2026 is estimated to occur in London with close to 39% growth. Other regions with high estimated growth are the South West and South East where rents are predicted to grow by 32% and 34% respectively over the same period. The lowest increase in average rent is estimated to be in Yorkshire and the Humber with a 17% price rise between 2015 and 2026 and overall monthly salary growth is not expected to keep pace with the rental market Between 2015 and 2026, the average monthly salary is predicted to rise by an average of 20% or £267 to £1,576. This increase is lower than the estimated increase in both monthly rental costs and rental deposits which could mean many individuals will find the cost of renting just as unaffordable as buying. This is despite the fact the financial outlay required to rent is significantly lower than getting on the property ladder. ‘The rapid rise in deposits as well as rents is a double blow for everyone on the rental ladder. With the forthcoming changes to tax legislation and crackdown on… Continue reading
