The number of new houses being put up for sale in London is increasing at a rate more than three times the national average as homeowners look to cash in on the surge in property values in the capital.
Meanwhile, demand for housing is rising much faster outside of London than in the capital, where the market has cooled significantly, according to new research.
The figures, published by the estate agents network Sequence, suggests that London has shifted from a seller’s market to one that is increasingly favouring buyers in recent months, while the opposite is true in the regions.
In the UK overall, buyer registrations rose 21pc in the year to July, three times faster than the 7pc increase in properties put on the market. In comparison, there was a 7pc increase in potential buyers and 25pc more houses put up for sale in London.
A polar vortex may still have much of the country singing the winter blues, but real estate experts say it’s not too early to prep for – the busy spring and summer selling season.
Sellers who get their homes listed early in the season actually have a better shot at closing a deal and doing so at a better price. While peak season varies by region, home asking prices peak nationally in May and inventory peaks in the summer – but buyers tend to start searching for homes as early as March, according to Trulia data.
“Buyers wake up from hibernation before sellers do,” says Trulia housing analyst Jed Kolko. “Sellers who list earlier may get higher prices and face less competition.”
Britain’s house price surge slowed in January after the biggest monthly jump in more than four years in December, mortgage lender Nationwide said on Wednesday, although on an annual basis prices continue to rocket higher.
British house prices rose roughly in line with expectations, up 0.7 percent this month compared with a 1.4 percent increase in December, which was the biggest single-month increase since August 2009.
The increase this month pushed the average price of a British house to 176,491 pounds ($292,700), or 8.8 percent higher on the year in the biggest annual rise since May 2010, when Britain’s coalition government first came to power.
Many economists are concerned that a government scheme launched in October which makes it easier for home buyers to get a mortgage with only a 5 percent deposit is likely to raise prices, rather than boost construction as the government hopes.
Even though home prices rose more than 10 percent last year and lifted 1.4 million house poor homeowners above water, consumers have suddenly become concerned nervous about the value of their homes, according to a national opinion survey.
A new Rasmussen Reports national telephone survey last week found that homeowner confidence in the value of their homes dropped suddenly over the holidays. According to the latest survey of 670 adult homeowners conducted on January 16-17 some 53% of owners feel the value of their home is more than what they owe.
That’s down from 62% a month ago, which was the highest level of owner confidence since Rasmussen Reports began regular tracking on this question in April 2009. It’s also down from 58% reported in November and October.
Not only have positive attitudes decreased, negatives have risen. Thirty-two percent (32%) now say their home is not worth more than the amount they owe, up from 24% in December. Fifteen percent (15%) are not sure.
Home prices flattened in the fall, as they normally do, but in reports prices ended up 10 percent or more higher than they were at this time last year. Rising prices have restored equity to homes nationwide. For example, last week CoreLogic reported that nearly half the nation’s states plus the District of Columbia have reached their price peaks from the housing boom or are within 10 percent of doing so, today
A tweak in New York State’s implementation of its 80/20 program aims to give affordable housing developments a boost, and balance demand for tax-exempt bonds issued by the state division of Homes and Community Renewal.
The plan, starting in January, is to spread a smaller subsidy amount over more projects. Up until now, developers were able to finance more than 50 percent of an 80/20 building via the program, which offers cheaper financing and qualifies a project for lucrative tax credits. Now, only the 20 percent of affordable units in a development will be eligible.
This new approach mirrors a Tribeca project that teamed the city with the Related Companies, where only $7.5 million in tax-exempt bonds were allowed to finance the project’s affordable housing portion. Under this model, Related was forced to seek traditional financing for the remainder of the project.
“This is a very positive step and very welcome in the affordable housing community,” Martin Dunn, principal at Dunn Development Corp., told Crain’s. “It will free up more tax-exempt bonds for affordable projects, and coupled with the expanded housing subsidies announced by Gov. Cuomo last week, we’re going to see more affordable units in the coming years.”