Ross Collins, Author at Amora Escapes

Housing Market Predictions for the Next 2 Years

Ross Collins — Mon, 19 Aug 2024 12:35:27 +0000

The US housing market has been on a wild ride in recent years. Soaring home prices fueled by historically low mortgage rates created a frenzy of buyer activity. However, the tide seems to be turning. Rising interest rates have cooled buyer enthusiasm, leading to slower sales and questions about the future.

While the surge of recent years might be moderating, experts predict a future with steadier home price appreciation, potentially with some regional variations. Mortgage rates are likely to remain elevated compared to historic lows, impacting affordability for some buyers. However, a gradual increase in housing inventory could offer more breathing room for those still in the market.

Let’s find out some of the expert predictions for the next two years in the US housing market. We’ll explore what’s in store for home prices, mortgage rates, and housing inventory.

Housing Market Predictions for the Next 2 Years: Hot or Not?

Forecast for Home Prices:

Home prices have been a major focus in the US housing market, with many wondering if the upward trend will continue. Experts offer a range of predictions, with some nuance depending on location:

Modest Appreciation: Many analysts anticipate a shift from dramatic price increases to a more moderate pace of appreciation, potentially around 1-3% annually. This is due to the combined effect of higher borrowing costs and a potential increase in available homes.
Limited Price Dips: A few experts suggest a possibility of slight price dips in some overheated markets, particularly if mortgage rates continue to climb. However, these declines are likely to be minor and localized.
Regional Variations: Keep in mind that the housing market isn’t a monolith. Predictions may vary significantly depending on the specific region. Areas with strong job growth and limited inventory could see more stable or even slightly rising prices, while slower-growth regions might experience a more pronounced cooling effect.

Forecast for Mortgage Rates:

Mortgage rates have been a key driver of the housing market frenzy, and their recent rise has significantly impacted affordability. Experts offer some insights into what homebuyers can expect for the next two years:

Rates Likely to Stay Elevated: The consensus among most analysts is that mortgage rates will likely remain above their historic lows. Predictions range from the mid 6 % to the low 7 % range for the next 24 months. This is due to the Federal Reserve’s efforts to combat inflation by raising interest rates.
Potential for Fluctuations: While a sustained upward trend is expected, some experts predict there could be periods of slight rate fluctuations. This could be influenced by economic data releases or policy changes by the Federal Reserve.
Impact on Affordability: Higher mortgage rates will undoubtedly impact affordability for some buyers. However, some analysts suggest this could eventually lead to a more balanced market with increased inventory as some buyers may choose to wait for rates to come down.

Forecast for Housing Inventory:

Housing inventory has been a major pain point for buyers in recent years. Low supply and fierce competition created bidding wars and drove prices up. Experts offer some insights into what’s on the horizon for housing inventory:

Gradual Increase Expected: Many analysts predict a gradual increase in available homes for sale over the next two years. This could be due to several factors:
- 1. Shifting Market Dynamics: Higher interest rates may incentivize some homeowners who locked in ultra-low rates to stay put. However, others facing life changes or financial pressures might decide to sell, adding to the inventory.
- New Construction: While not a major short-term solution, an increase in new home construction activity could eventually contribute to a more balanced inventory level.
Regional Variations: Similar to home prices, the availability of homes for sale will likely vary by region. Areas with strong job markets and limited housing options might see a slower rise in inventory compared to markets with a cooling housing sector.
Not a Buyer’s Paradise (Yet): It’s important to manage expectations. While an increase in inventory is a positive sign, it’s unlikely to swing the pendulum completely to a buyer’s market in the next two years. The overall supply is likely to remain below pre-pandemic levels.

For buyers, this could translate to a less frantic buying experience with potentially more time for deliberation. However, competition might still exist, especially for desirable properties.

Predictions for Regional Market Variations:

The US housing market is a complex tapestry woven from numerous regional trends. While national forecasts offer a general outlook, significant variations are expected across different parts of the country. Here’s what experts predict for regional markets:

Sun Belt vs. Northeast/Midwest: The Sun Belt region (South and Southwest) is likely to see continued growth, albeit potentially at a slower pace. This is due to factors like favorable weather, job opportunities attracting migration, and a larger pool of existing homes. In contrast, the Northeast and Midwest might experience a more pronounced cooling effect, with potentially lower price appreciation or even slight dips in some areas, particularly those with slower job growth.
Coastal vs. Non-coastal: The affordability gap between coastal and non-coastal areas is likely to widen. Rising interest rates could price out some buyers in traditionally expensive coastal markets, leading to a more balanced market or even price corrections. Conversely, non-coastal areas with a lower cost of living could see continued steady growth.
Hot vs. Cold Markets: “Hot markets” that experienced explosive price surges in recent years might see a more significant moderation in price growth or even slight declines. Conversely, markets that haven’t seen dramatic price increases might experience more stable or even slightly rising prices, especially if they have strong local economies.

Remember, these are broad regional trends, and specific cities within each region could deviate from them based on local factors like job market strength, new construction activity, and overall housing stock.

Latest Houing Market Snapshot: June 2024

Recent data by N.A.R. provides a clearer picture of the current housing market conditions. Existing home sales faded by 5.4% in June 2024, achieving a seasonally adjusted annual rate of 3.89 million units. This decline represents a significant drop of 5.4% compared to one year prior.

The median existing-home sales price, however, saw a remarkable rise of 4.1%, climbing to $426,900 in June. This marks the second consecutive month that the price reached an all-time high, and it is the twelfth straight month of year-over-year price gains. All four major U.S. regions reported price increases.

Interestingly, the total housing inventory at the end of June rose to 1.32 million units, an increase of 3.1% from May and a substantial increase of 23.4% year over year. This inventory translates to a supply of approximately 4.1 months at the current sales pace, up from 3.7 months in May and 3.1 months in June 2023.

NAR Chief Economist Lawrence Yun noted, “We’re seeing a slow shift from a seller’s market to a buyer’s market.” As homes sit longer on the market and sellers receive fewer offers, buyers are becoming more discerning, often insisting on home inspections and appraisals. This shift illustrates that while prices are rising, the market dynamics are beginning to stabilize.

Tips to Buy & Sell a Home in These Next 2 Years:

Buyers: Conquering the Market in Higher-Rate Times

The rise in mortgage rates presents challenges for buyers, but there are still strategies to navigate this market:

Get Pre-Approved: Knowing your budget upfront is crucial. Getting pre-approved for a mortgage gives you a clear picture of your affordability range and strengthens your offer.
Consider Adjustable-Rate Mortgages (ARMs): ARMs offer a lower initial interest rate compared to fixed-rate mortgages. However, be aware that the rate can adjust after a set period, potentially impacting your monthly payments. Carefully evaluate your financial stability and long-term plans before considering an ARM.
Explore Financial Assistance Programs: For first-time homebuyers, various government programs and down payment assistance initiatives can help bridge the affordability gap. Research local and state programs to see if you qualify.

Sellers: Standing Out in a Shifting Market

As the market cools, sellers need to adapt their strategies to attract buyers:

Price competitively: Conduct thorough market research to determine a fair and competitive asking price. Overpriced homes are likely to sit on the market longer.
Enhance Curb Appeal: First impressions matter. Invest in landscaping, minor repairs, and a fresh coat of paint to make your home visually appealing to potential buyers.
Highlight Unique Features: Showcase what makes your property special. Do you have a beautiful backyard, a recently renovated kitchen, or a desirable location? Emphasize these features in your marketing materials.
Work with a Reputable Real Estate Agent: A skilled agent can guide you through the selling process, offer valuable negotiation advice, and help you navigate the changing market conditions.

Conclusion: Navigating the Evolving US Housing Market

This new landscape presents both challenges and opportunities. For buyers, careful budgeting, exploring different loan options, and potentially waiting for the right moment is key. Sellers need to adapt their strategies by offering competitive pricing and highlighting the unique features of their homes.

Overall, the US housing market remains a complex system with regional variations and ongoing economic influences. While a cautious approach is warranted, the future isn’t all doom and gloom. By understanding the trends and employing strategic planning, both buyers and sellers can navigate this evolving market and achieve their real estate goals.

Source: Norada

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‘Perfect for Us’: the Sydney Suburbs No One Wants to Leave

Ross Collins — Wed, 31 Jul 2024 14:06:15 +0000

Ocean views, sought-after schools and hardly a property for sale in sight. Some of Sydney’s most tightly held suburbs had only a handful of sales within the past year.

The number of Sydney properties for sale plummeted amid the market downturn and economic uncertainty caused by rising interest rates, further reducing supply in areas with already low turnover – such as prime locations and smaller suburbs.

Houses for sale near Bondi Beach are few and far between, with fewer than 20 sold over the year to March.CREDIT:ISTOCK

Waterfront Watsons Bay, Kirribilli and Whale Beach, where houses are in limited supply to begin with, were among more than 80 Sydney suburbs where five or fewer houses traded over the year to March, Domain data shows.

House sales were also limited in similarly small prestige suburbs like Point Piper, Darling Point and Tamarama, which each had between six and 12 transactions.

However, even areas with more housing, such as Bondi Beach, North Manly, Narrabeen and Brighton-le-sands, were among more than 370 Sydney suburbs where house sales slumped below 50, the benchmark used by Domain research to calculate a suburb’s median price.

As were middle ring suburbs like Summer Hill and North Epping, and outer suburbs like Mount Kuring-Gai and Camden.

For apartments, South Coogee, Clovelly, Millers Point, Enmore and Willoughby, were among the suburbs with limited sales.

It comes amid a drop in homes for sale, as sellers hesitate amid falling prices and rising interest rates. While prices have now been rebounding for several months, the number of homes listed for sale in May, was still down 20.7 per cent annually.

Ray White’s head of research Vanessa Rader said properties in prime locations, whether that was a waterfront or beach side position or a family-friendly suburb with good schools, were traditionally tightly held.

“These are typically pockets that have some kind of geographic advantage. You can’t just go recreate that too easily,” she said.

“If someone is selling an asset in these locations, where are they going to move to,” she said, adding this had become a greater concern amid low supply levels.

Rader said would-be sellers held back as prices declined. That then reduced the options for buyers, further deterring homeowners from selling, as they feared they would not find a suitable home to move to.

“It’s hard to find somewhere to buy, and if you have to go into the rental market, the vacancy rate is at a longtime low,” she said.

Uncertainty about the property market and broader economic outlook was also deterring sellers, as was the increasing difficulty of refinancing.

Sydney’s most affluent pockets, like Point Piper, were among suburbs with the fewest sales over the year to March.CREDIT:PETER RAE

Eastern suburbs agent Ric Serrao, principal of Raine & Horne Double Bay, said traditionally tightly held suburbs had become even more so.

“There’s a percentage of clients who are opportunistic and when they feel the market prices are not on their side they just don’t list,” he said.

Limited supply increased competition for available properties, putting a floor under price declines, and supporting the recent rebound.

“How can something go down, when every time you’ve got a property you’ve got 10 to 15 people turning up,” Serrao said.

It was a similar story in the northern suburbs, where Pello Northern Suburbs principal Michael Dowling has seen listings become even fewer in low turnover suburbs like Denistone and East Ryde, which recorded 40 and 38 house sales, respectively.

“[East Ryde] is a very family orientated area, one of the areas in the Ryde district where all the neighbours seem to know each other … and there’s a lot of older people who have been there since the dress circle estate was built,” he said.

The area was popular with upgrading families from the north shore and inner west, seeking a comparatively more affordable house, in a family-friendly area and a central location.

Deciding to leave such a suburb behind is not easy, as East Ryde sellers Mark Khoo and Andrea Wong know, having recently listed their five-bedroom house to relocate closer to family.

Andrea Wong and Mark Khoo with their children Quinton and Natalie are selling in East Ryde.CREDIT:WOLTER PEETERS

They purchased one of the suburb’s original estate homes 18 years ago, from the property’s first owner, and later rebuilt on the block.

“East Ryde has been perfect for us raising a young family, it’s a very central location, close to schools, shopping centres and amenities, we’ve got lots of lovely neighbours, a strong sense of community and there’s lots of surrounding greenery,” he said.

“It was a difficult decision to decide to sell, but the market seems to be in a healthy state,” he said, adding there had been a strong level of interest so far.

“I think this reflects that it’s a sought after area with not much turnover.”

Dowling added that several months of price growth had given buyers and sellers more confidence to transact.

While listing volumes were still low, there had been a recent uptick in home appraisals across the northern suburbs, which could lead to an increase in homes for sale in three to four months time.

Source : TheSydneyMorningHerald

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Digital Property Files Get Postponed

Ross Collins — Wed, 31 Jul 2024 14:06:14 +0000

The Ministry of Digital Governance has been forced into a new delay for the implementation of the digital property file, with which notaries could complete property transfers in a short period of time by obtaining the required supporting documents through interoperability.

Although it was supposed to be fully operational on November 1, this date has been pushed to January 1, 2024. Of course, the market considers the schedule set by the relevant ministry to be unattainable, as there are insurmountable problems, which for now at least cannot be resolved.

At the same time, the notary will not be able to draw from the digital property file all the required supporting documents (they amount to approximately 17 in each case), but only six to eight supporting documents, while the system will work exclusively for properties that are registered.

Persistent red tape

Essentially, the bureaucracy remains and there will be few, it seems, real estate transfers that can be served by the digital real estate file. And this is because, as the notaries report, approximately 85% of the properties that have acquired a KAEK (land register number) present errors. Obvious mistakes (in name, etc.) will be addressed, they note, however differences in area cannot be addressed.

Although the government claims that they will be able to unlock KAEK and proceed with corrections, in practice this is impossible. And this as in the case, for example, that a plot of land has been declared to cover 160 square meters and from the registration and the engineer’s topography it stems it is 160.8 sq.m., then no correction can be made. Such a change is likely to create a problem for the neighboring plot, reducing its declared square meters.

All these have not been foreseen by the new system. In this context, a meeting of notaries with the staff of the Ministry of Digital Governance was planned last week for an exchange of views and the presentation of the new system.

It is noted that before the notary can start the transfer procedures, the pre-procedure by the engineer must be finished, which also requires in many cases months to complete the collection of the documents from the town planning and cadastral offices. In fact, as the notaries claim, today there are approximately 30,000 pending property transfers, as it is impossible to collect the data.

Interoperability

However, the Ministry of Digital Governance claims that with the digital property transfer file notaries will be able to obtain the necessary supporting documents and complete the relevant contracts in a short period of time, without having to wait for the municipalities, the tax office or other state bodies to issue them. All documents will now be pulled through interoperability. With the planned changes, the transfer of property can, they claim, be completed in a few days, while the legality check will also be completed in one day.

According to the competent ministry, from January 2024 the digital property transfer file will operate, in which the notary will enter a digital application and send an invitation via gov.gr to the buyer and seller. Within this common digital environment, tax information, insurance information and some other supporting documents will be collected.

Upon completion of the process, the digital contract will be created. This means that the title deed will be a digital document whose content will not need to be repeated in various documents as is done today.

Source : Ekathimerini

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Julie James returns as Welsh Housing Ministe

Ross Collins — Sun, 31 Mar 2024 15:05:43 +0000

Propertymark has welcomed the reappointment of Julie James as the new Welsh Housing Minister.

Timothy Douglas, head of policy and campaigns at Propertymark, said the agency trade body is proactively seeking to arrange an initial meeting to help address future challenges across the housing sector in Wales.

He said: “We are pleased to see the reinstatement of a ministerial position with a dedicated remit concerning housing and have long advocated the need for this to be a devoted role given the magnitude of challenges that lie ahead in Wales.

“We are also pleased to see that Julie James continues in her housing role to ensure continuity.

“However, Julie James must use this opportunity to listen to concerns from the property industry and to end the prospect of rent controls in Wales.

“The minister must also work across government to increase housing supply by reviewing Land Transaction Tax on additional properties and support for the sector to decarbonise. In addition, a key priority must also include Propertymark’s long-term call for a Welsh Housing Survey to help gather better insight for evidence-based policy making going forward.”

Source: Estate Agent

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Capital Appreciation set to rise more than expected this year

Ross Collins — Fri, 26 Jan 2024 11:25:19 +0000

Investors relying on capital appreciation are in for a pleasant surprise in 2024 according to Knight Frank.

Tom Bill, head of the agency’s residential research team, says: “In October, financial markets were pricing in a single interest rate cut of 0.25 per cent by the end of 2024. [Now] they are expecting five. The main reason for this changing outlook is that inflation is falling faster than expected. As a result, mortgage lenders have dropped their rates fairly significantly in recent weeks, partly to win business in a low-volume market.

“The best five-year fixed-rate mortgage is now under 4.0 per cent, which was made possible after the five-year swap rate fell a full percentage point over the final quarter of 2023. As a result of this more positive backdrop, we have revised our UK house price forecasts from three months ago.”

On the sales side Knight Frank now expects UK mainstream prices to rise by 3.0 per cent in 2024, which compares to a decline of 4.0 per cent predicted in October. It expects cumulative growth of a meaty 20.5 per cent in the five years to 2028.

Bill states: “Data from Halifax and Nationwide certainly suggests a corner is being turned. While the former reported a 1.7 per cent increase in 2023 and the latter posted a fall of 1.8 per cent, that compares to a 5.0 per cent decline that both identified in August. With UK housing transactions a fifth below their five-year average, we waited until a clear pattern emerged showing prices were bottoming out, which we believe is now the case.

“As a result of stronger demand, the number of mortgage approvals was 10 per cent higher in November than the previous year and we expect a double-digit percentage increase in sales volumes this year compared to 2023.”

On the lettings side, Knight Frank says landlords have left the sector in recent years due to extra red tape and taxes, which has put strong upwards pressure on rental values.

However, supply is recovering as demand is gradually being absorbed and more sellers have become landlords in a sales market where price growth has been minimal.

Bill says: “New listings in Prime Central and Prime Outer London were only seven per cent below the five-year average in December, Rightmove data shows.

We have not altered our rental forecasts dramatically from October and forecast 5.5 per cent rental value growth this year in PCL, which would be lower than the 8.0 per cent registered in 2023. Meanwhile, we expect a 4.5 per cent increase in POL, down from 6.8 per cent in 2023.

“Rental value growth should be stronger in lower-value markets as the supply/demand distortions are greater. Property owners are typically more discretionary in higher-value markets and have been able to let while price growth has been flat.

“There were 4.3 new prospective tenants for every rental listing below £1,000 per week in PCL and POL in the final quarter of last year, Knight Frank data shows. Above £1,000 per week, the figure was 2.7.”

Source: PropertyInvestor

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Survival of the Fittest in Next Year’s Property Market

Ross Collins — Sun, 24 Dec 2023 12:27:23 +0000

Year 2024 will see investors flock to the “resilient” markets which can ride out economic fluctuations, says a proptech CEO.

This year’s property market has been challenging for buyers and agents alike, and LocalAgentFinder CEO Richard Stevens predicts that 2024 will be no different.

“As we look ahead to 2024, the real estate market is poised for a dynamic shift, influenced by a range of economic and demographic factors,” said Mr Stevens.

“With listing volumes expected to rise, sellers will need to be agile and well-informed to navigate this fluctuating market, positioning their properties to stand out in a potentially crowded market,” he advised.

The proptech CEO stressed that sales conditions will vary substantially from market to market, observing that “property values are increasingly influenced by fluctuating interest rates and regional economic trends”.

This means that while listing volumes have been experiencing a general slowdown, Mr Stevens believes there remains a high demand for quality properties in desirable locations as a result of local market variations.

“Investors are advised to keep an eye on emerging hotspots, where growth potential is likely to be concentrated, particularly in areas showing resilience to economic fluctuations,” he said.

To Mr Stevens and his team at LocalAgentFinder, the uncertainty of today’s housing market offers unique opportunities.

Despite an 18 per cent drop in home listings across the nation, LocalAgentFinder reported that their revenue grew by 22 per cent in the 2023 financial year.

What is the secret to the group’s success? According to LocalAgentFinder, the key to their surprising growth is concentrating on upping their market share, not their gross listings, with one in 50 Australian property listings now being listed through their platform.

Mr Stevens said: “In a period of downward market trends, LocalAgentFinder has not only navigated these challenges but achieved significant growth.”

He added that “securing a spot in the AFR Fast 100 for the third consecutive year is a testament to the hard work and dedication of our team, and the incredible network of independent real estate agents we collaborate with”.

As the Australian property sector prepares for 2024, LocalAgentFinder shared that it plans to continue its upward growth trajectory by forging partnerships with an increasing number of real estate agents.

Amid ongoing economic instability, Mr Stevens emphasised the “critical importance of vendors partnering with local market experts to stay informed about the latest and emerging developments”.

“The expertise and dedication of these independent agents is fundamental in empowering property sellers with the knowledge to make confident choices,” he concluded.

Source : RealEstateBusiness

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Dubai Property Market Zooms, Realty Deals Record 37% Growth in 3rd Quarter

Ross Collins — Fri, 22 Dec 2023 03:41:07 +0000

The Dubai real estate market achieved remarkable and unprecedented results in property transactions. In Q3 2023 alone, the value of these transactions soared to Dhs430 billion, showcasing an impressive 37% growth compared to the same period last year, while the number of new investors witnessed a significant upswing of 15%.

This underscores our steadfast dedication to translating and embracing Dubai’s vision and goals and underscores the unshakable confidence investors have in the sector, the resilience of our economy, and its ability to tackle challenges head-on, all of which collectively contribute to the ongoing elevation of Dubai’s competitive Standing.

This was stated recently by Sultan Butti Bin Mejren, Director General of the Dubai Land Department.

Meanwhile, the UAE-based real estate firms AveNew by RH, Pride and Property and Landsmith Real Estate have announced the completion of a joint land transaction worth over Dhs300 million – one of the biggest transactions of its kind – in Dubai’s coveted Jumeirah Golf Estates. Established in 2021, AveNew has created a strong presence in the Dubai Real Estate Market in a short span of time, specialising in helping investors and property buyers secure incredible deals across the Emirate owing to their extensive knowledge of the Dubai Real Estate market and a strong network of agents & consultants.

Landsmith Real Estate, a well-established homegrown boutique real estate firm, and among the pioneers in the luxury property segment in Dubai, specialises in prime residential locations as well as structuring deals and large commercial projects. Pride and Property, another formidable entity in the real estate realm, has immense experience in selling luxury off-plan and ready-to-move-in properties on the beachfront and other prominent locations in Dubai.

The trio combined their expertise to secure the land deal of over Dhs300 million. Jumeirah Golf Estates is among the world’s ten foremost luxury and lifestyle estates and houses over 1,500 villas, townhouses, and apartments.

The transacted land that is part of this deal overlooks an expansive view of the Fairways. It is surrounded by the landscapes of a luxury golf course community which is a renowned name in the annual golf calendar and has hosted 14 editions of the acclaimed DP World Tour Championship’s (European Tour) finals.

Nitin Chauhan, Director of Landsmith Real Estate, expressed his insights into the unique appeal of golf course-facing luxury villas in Dubai.

“The final form of this project will be the epitome of luxury living in golf course communities. Golf course-facing luxury villas are popular but rare in this region. With that demand dynamic becoming apparent and the location of this plot, which overlooks unique views of two Fairways, there was bound to be interest from top developers.”

Popular for his customer-first approach in the real estate market, Nitin is a specialist in luxury villas, plots and apartments in prime locations. He has had a presence in Dubai’s real estate scene since the inception of freehold properties and is an investor in multiple projects and properties.

This land sale serves as a clear indicator that Dubai’s luxury real estate sector is poised for sustained growth and an upward trend in property prices. The sale is also a testament to Knight Frank’s list of the world’s top luxury real estate markets in2023, which placed Dubai at the top – accounting for 17% of global sales in the segment.

Kunal Singh Sandhu, owner of Pride and Property, feels the landmark sale represents the growing allure of luxury real estate in Dubai. “Pride and Property and partners invested significant time and effort into this record-breaking transaction. There has been a significant increase in buyers for luxury properties in Dubai and we think this is just the start for a promising segment. The best is yet to come for the luxury property market in Dubai.”

Kunal has been in real estate since 2007 and has carved a successful path in the luxury real estate niche. Under Kunal’s leadership, they have made luxury real estate their forte and helped launch and manage projects for reputable developers in Dubai The completion of this deal in Dubai is an indicator of the escalating demand for golf course communities due to several key factors.

Foremost among these is the limited supply of such exclusive properties. The scarcity of available golf course real estate contributes significantly to the premium placed on these sought-after developments by discerning buyers. It also underscores the global recognition of Dubai’s real estate market as a lucrative and stable investment destination for local and global buyers, and is another hat-tip to the UAE’s exemplary track record as an investment-friendly real estate market.

Source : GulfToday

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London Sees Largest Increase in Rental Affordability

Ross Collins — Sat, 02 Dec 2023 15:12:18 +0000

While London remains the least affordable city for renters, the capital has seen the largest improvement in rental market affordability over the past five years, Benham and Reeves analysis of ONS data shows.

In London tenants spend 35% of their income on rent, however the cost of renting in the capital has fallen from £1,495 in 2017 to £1,450 in 2022, while typical incomes have increased from £2,975 to £4,155 per month over the same timespan.

As a result the current level of income required to cover the cost of renting has fallen from 50% in 2017 to the 35% required today.

Marc von Grundherr, director of Benham and Reeves, said: “Rental market affordability has long been a problem for the nation’s renters and while the percentage of income required to cover the cost of renting may have fallen across a number of regions, it certainly won’t feel like the challenge of renting has become any more affordable.

“Yes, an increase in earnings may have helped to an extent, but there are many who simply won’t have benefited from this increase. At the same time, the cost of renting has climbed across every region but one, putting further pressure on tenant finances.

“With the government doing its best to deter landlords from the sector, a reduction in the level of available rental stock will have also helped to drive up the cost of renting and this is an issue that doesn’t look like it will be easing any time soon.”

Across England as a whole 26% of tenant income is spent on rent, a proportion that has stayed unchanged since 2017.

Improving affordability

It’s not just London that has seen a reduction in the level of income required to cover the average cost of renting.

In the East of England the proportion of income required to cover the average rent has reduced by -4%, as high incomes of £3,560 stood against typical rents of £865 per month.

Affordability also improved in Yorkshire and the Humber (-2%), the North West (-1%), South West (-1%), and East Midlands (-1%).

Worsening affordability

Tenant affordability has worsened in three regions, by 5% in the West Midlands, 4% in the South West, and 1% in the North West.

There’s likely been an influx of tenants moving to these regions in the past five years, shifting the balance of supply and demand.

It’s important to note that all these increases came from a low base.

Even after affordability became tougher for tenants, average incomes made up 29% of rents in the West Midlands, 29% in the South West and 26% in the North West – not far from the national average.

Source : PropertyWire

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The Gucci Family House in Rome Is Looking for a New Owner to Try It on for Size

Ross Collins — Tue, 14 Nov 2023 13:41:27 +0000

Listing of the Day

Location: Rome

Price: €15 million (US$16 million)

A longtime home to the Gucci family stands on Via della Camilluccia, one of the most exclusive residential streets north of Rome, where a private gate opens to the main entrance of a villa surrounded by lush greenery and trees.

Aldo Gucci, the eldest son of fashion house founder Guccio Gucci, began construction of this historic four-story villa, which combines Tuscan design with English-style accents, in the late 1940s. It was completed in 1951 and restored with fine finishes in the 1990s.

“There are no other villas on sale such a short distance from the historic center of Rome, and this one is surrounded by a large private park and has a swimming pool,” said listing agent Chiara Gennarelli. “Another fundamental aspect is security—it’s very close to the foreign ministry; therefore, the location is very controlled and very safe.”

An aerial view of the property shows that the property is surrounded by about 10,000 square meters of parkland.

Building Heritage/Forbes Global Properties

A shell-shaped wooden staircase greets visitors who enter the main villa from the first floor, which also has a bright living room with charming bow windows, two living rooms (one with a fireplace, another with space for a grand piano), a dining room and a study.

A large kitchen is found on the garden level along with a game room, a laundry area, and a staff area consisting of three rooms, a bathroom and a garage.

The second floor houses the primary bedroom, as well as four other bedrooms, all with en-suite bathrooms. The third level features a large room with a fireplace and striking views of downtown Rome, a bedroom with en-suite bathroom, a terrace and a staircase that leads to a large and a rooftop terrace.

“The spectacular rooftop penthouse has a fireplace and a large living room,” Gennarelli said. “A staircase leads directly to the upper terrace,” which overlooks the Altare della Patria, or Altar of the Fatherland, a national monument that lies between the Piazza Venezia and the Capitoline Hill, which honors the first king of a unified Italy in Rome’s historic center.

A shell-shaped wooden staircase greets visitors who enter the main villa from the first floor.

Building Heritage/Forbes Global Properties

The property includes a second villa Aldo Gucci built in the early 1960s for one of his sons. It has a separate entrance from Via Pecori Giraldi and is in need of renovation. “The second villa offers various possibilities,” Gennarelli said. “It could be a guest house or a home for the children once they grow up, or even a home office. I could also see this asset as an investment: Buy the villa to live in and split the second unit into medium-sized apartments to resell them.”

Gennarelli said the history is palpable crossing the gate into the property. “You perceive the history of this family linked to the world of fashion, and you can imagine the days they spent there. But you can also project yourself there in the future—perhaps after doing renovations.”

Stats

The main villa, which sits on 1.7 acres of parklike land, has more than 12,916 square feet and there are six bedrooms, five full bathrooms and two half bathrooms. The three-story secondary villa, which needs renovation, has nearly 9,700 square feet of space. It has three levels and five bathrooms. It includes a greenhouse for plants and two outbuildings.

Amenities

The main villa has an elevator connecting all floors. Gennarelli noted that the home also has a hobby room featuring an English-style pool table and a large living room with a piano, “which is great for hosting events and dinners with friends.”

The outdoor pool has a dressing room that includes a shower and a bathroom. The property also includes an indoor garage and a covered outdoor space for parking cars next to the secondary villa.

Neighborhood Notes

The property is a 10-minute drive from the Tiber River and the historic center of Rome.

“The area is amazing,” Gennarelli said. “It’s surrounded by green parks and neighbors include embassies, important families in private villas, professionals, and famous yacht architecture studios. There is a shopping street at the end of the road with everything you need, from pharmacies and supermarkets to bars and restaurants.”

Source : MansionGlobal

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Why is Everyone Moving to Alberta? A Real Estate Perspective

Ross Collins — Mon, 25 Sep 2023 01:07:12 +0000

Alberta’s Economic Stability

The Alberta economy is not just about oil anymore. It has undergone significant diversification in recent years, making it less susceptible to the volatile global energy market. Sectors like technology and innovation, finance, agri-food, and renewable energy have grown and attracted a highly skilled workforce. Compared with other provinces, Alberta has a thriving job sector that drives its economic stability.

A strong economy with a stable job market creates a consistent demand for housing. People who move to Alberta for employment opportunities require accommodation, increasing the demand for rental and owned properties. By offering secure employment opportunities and supporting a high standard of living, Alberta ensures a continuous demand for real estate.

Affordable Real Estate Market

Property prices in Alberta are generally more affordable than in provinces such as British Columbia and Ontario. Cities like Edmonton and Calgary offer particularly good value for money. Currently, Edmonton has an average home price of $412,334, while Calgary has an average of $552,273. This is a considerable decrease from more popular cities like Toronto and Vancouver, where the average home price is over 1 million dollars. Home prices in Alberta have been increasing but are rising more slowly than the national average, making its housing market more accessible for first-time buyers and investors.

Alberta also experiences indirect impacts on their real estate. Despite the cold winters, utility costs in the province are relatively low due to the local availability of natural resources. This, combined with competitive markets for services such as electricity and gas, helps keep living costs down. Alberta is also the only province in Canada that does not have a provincial sales tax, which results in significant savings on day-to-day expenses. When people can afford to live comfortably, they are more likely to invest in real estate, whether their primary residence or an investment property.

Investment Opportunities in Alberta’s Real Estate Market

Alberta’s real estate market is not just for homebuyers; it also presents many opportunities for investors. Its robust economic growth and a relatively affordable yet steadily appreciating housing market create an environment conducive to real estate investment.

While Alberta’s housing market is currently more affordable than many other provinces, it’s also demonstrating strong potential for future growth. Historical trends suggest a steady appreciation of property values over the years. The expectation of continued economic growth and the influx of people to Alberta supports the prediction of ongoing property value appreciation, making real estate investment potentially lucrative in the long term.

Alberta’s thriving job market and high quality of life attract more people to the province, creating a strong demand for rental properties. Both Calgary and Edmonton have substantial populations of students and young professionals who prefer renting, making buy-to-let investments a potentially profitable venture in these cities.

Alberta’s growing population is spurring new residential and commercial development projects. Investing in these new developments can provide excellent opportunities for real estate investors. These new properties often attract premium rental rates and can appreciate in value more quickly than older ones.

The Future of Alberta Real Estate

The prospects for Alberta’s real estate market look promising. The continued influx of people to the province bears testament to the growing appeal of Alberta, solidifying its position as a thriving real estate hub in Canada. While property values in Alberta are expected to appreciate, they are likely to remain more affordable than many other major Canadian cities, making Alberta an attractive market for first-time buyers and investors. As Alberta continues to evolve and adapt, the province’s real estate market is expected to remain dynamic and resilient in the years to come.

Source : REMAX

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