Relentless supply constraints and home price growth outpacing wages are testing the patience of home buyers in the United State this year, but existing home sales are still on track to come in at their highest pace since 2006.
Monthly existing home sales were uneven in the first quarter but still came in at a seasonally adjusted annual rate slightly higher at 5.29 million than last year’s overall annual pace of 5.26 million, National Association of Realtors chief economist told the 2016 Legislative Meetings and Trade Expo.
He pointed out that demand has mostly remained strong, especially in the top job producing metro areas and is being upheld by mortgage rates near three year lows and the 14 million jobs gained since 2010.
Indianapolis, Pittsburgh, and Memphis are the best markets for first time buyers in the United right now, according to new research.
Cleveland, Chicago, Houston, and Birmingham, Alabama, also made the top 10 first time buyer market ranking list put together by real estate firm Zillow.
To determine which markets are best for those looking to buy their first home, Zillow looked for places where it's more affordable to make a monthly mortgage payment than a monthly rental payment.
Steady job growth, affordable home prices, attractive mortgage interest rates and pent-up demand will help the US housing market continue on a gradual upward trajectory in the year ahead, it is claimed.
However, supply side headwinds led by a shortage of construction lots and labour, along with tight access to acquisition, construction and development loans, continue to hamper a more robust recovery, according to economists who participated the National Association of Home Builders (NAHB) Spring Construction Forecast event.
‘Builders remain cautiously optimistic about market conditions. This should be the first year since the recession in which the growth rate for single family production exceeds that of multifamily. And we see single-family growth accelerating in 2017 as the supply chain mends and we can expand production,’ said NAHB chief economist Robert Dietz.
Housing affordability across Australia experienced improvement during the first three months of 2016, according to the latest affordability report.
Affordability improved by 2.7% quarter on quarter and was 0.4% more favourable than the same period a year earlier, the data from the report by the Housing Industry Association shows.
Aggregate capital city housing affordability was 4.1% more favourable during the quarter, while regional markets experienced 0.1% improvement.
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.
Home values in Australian capital cities continued to rise in the first four months of 2016, up 3.3% compared to the same period in 2015, the latest index shows.
In April, the pace of capital gains rebounded from the relatively flat numbers recorded in March, with dwelling values increasing by an average of 1.7%, according to the Corelogic April home value index.
Across the country, housing market trends remain mixed, however, and CoreLogic research director Tim Lawless noted that the improvement in the rate of capital gains has been ‘broad based’ during 2016 with every capital city except Perth recording a lift in
dwelling values over the calendar year to date.
House prices in Auckland, New Zealand, look set to continue rising throughout this year after a buys month of March, and rents are also up, the latest index figures show.
The average sale price for the month was $866,782, and the median price was $798,000, according to the latest data monthly report from real estate agents Barfoot & Thompson.
The March average sales price was the third highest on record, within $10,000 of the all-time high in November last year, and 5.4% higher than last month while the median price at $798,000 is the second highest on record, within $2000 of the all-time high in December last year, and up 8.1% on February’s median price.
Residential building land in Australia has increased in price but availability is falling, making it more and more difficult for builders to provide affordable housing, it is claimed.
In the last quarter of 2015 the number of residential lot sales across Australia fell by 1.6% while the median lot prices increasing by 5.2% to $234,600, according to the latest edition of the HIA-CoreLogic RP Data residential land report.
Land supply pressures were more pronounced in the capital cities, with lot sales falling by 2.3% during the quarter and the median lot price rising by some 6.6%.
Home prices in northern Portugal fell by as much as 35 percent after the global real estate crisis of 2008, but in the last three or four years, prices have held steady, and the number of sales has been growing, said André Borges, a broker with the Porto office of Portugal Sotheby’s International Realty.
First time buyers in the United States are facing a lack of affordable homes to buy and higher prices, according to new research.
Home values are rising the fastest among entry-level homes in more than half of the largest housing markets, according to latest real estate market report from Zillow which covers the first quarter of 2016.
It says that rising home values in this segment of the market can be attributed to a lack of supply, with 10% fewer homes for sale this year compared to last.
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