Pending home sales in the United States were mostly static in June but the latest index from the National Association of Realtors is now at its second highest reading over the last year. However, supply and affordability constraints prevented a bigger boost in activity from mortgage rates that lingered near all-time lows through most of the month and increases in the Northeast and Midwest were offset by declines in the South and West. Overall the NAR’s pending home sales index, a forward looking indicator based on contract signings, was up 0.2% month on month and is 1% higher than June 2015. But it is noticeably down from this year’s peak level in April. According to Lawrence Yun, NAR chief economist, a solid bump in activity in the Northeast pulled up pending sales modestly in June. ‘With only the Northeast region having an adequate supply of homes for sale, the reoccurring dilemma of strained supply causing a run-up in home prices continues to play out in several markets, leading to the last two months reflecting a slight, early summer cooldown after a very active spring,’ he said. ‘Unfortunately for prospective buyers trying to take advantage of exceptionally low mortgage rates, housing inventory at the end of last month was down almost 6% from a year ago and home prices are showing little evidence of slowing to a healthier pace that more closely mirrors wage and income growth,’ he pointed out. ‘Until inventory conditions markedly improve, far too many prospective buyers are likely to run into situations of either being priced out of the market or outbid on the very few properties available for sale,’ he added. One noteworthy and positive development occurring in the housing market during the first half of the year, according to Yun, is that sales to investors have subsided from a high of 18% in February to a low of 11% in June, which is the smallest share since July 2009. Yun attributes this retreat to the diminished number of distressed properties coming onto the market at any given time and the ascent in home prices, which have now risen year on year for 52 consecutive months. ‘Limited selection of homes at bargain prices is reducing the number of individual investors willing or able to buy. This will hopefully open the door for first-time buyers, who made some progress last month but are still buying homes at a subpar level even as rents increase at rates not seen since before the downturn,’ Yun explained. In spite of the slight slowdown in contract signings from April’s peak high, existing home sales this year are still expected to be around 5.44 million, 3.6% higher from 2015 and the highest annual pace since 2006 when it was 6.48 million. After accelerating to 6.8% a year ago, national median existing home price growth is forecast to slightly moderate to around 4%. A breakdown of the figures show that in the Northeast the index was up 3.2% in June and is now 1.7% above a year ago. In the Midwest the index increased 0.8% and is now 1.6% higher than June 2015.Pending home sales in the South decreased modestly by 0.6% in June but are still 1.8% higher than last June. The index in the West fell by 1.3% in June and is now 1.8% below a year ago. Source link

The rate of house price growth in key cities in the UK is starting to plateau after a strong first half of the year with London in particular likely to see slower growth ahead, according to the latest index data. Month on month the Hometrack Cities Index recorded growth of 6.9% in June and year on year growth is running at 10.2%, the same level as the previous month. The index report suggests that double digit year on year growth has been sustained by the surge of investor demand ahead of the stamp duty change in April while low mortgage rates and improving economic conditions have continued to attract households into the market against a backdrop of dwindling supply with the net result being continued upward pressure on prices. In June Bristol remained the fastest growing city with year on year price growth of 14.7% taking the average price to £253,400, followed by London with annual growth of 13.7% to £476,800 and then Cambridge up 11.5% to £411,800. The data also shows a strong uplift in price growth in large cities such as Glasgow, Manchester, Liverpool and Leeds where house prices are comparatively affordable and yields above average and attractive to investors.Month on month the highest growth was in Oxford at 9.6%, followed by Cambridge at 9.5%, London at 8.2% and Bristol at 7.8%. At the opposite Aberdeen has seen prices fall by 8.2% year on year but the city recorded a small uplift month on month of 0.3%. The report points out that any impact from the decision by the UK to leave the European Union will not be reflected in the index for two to three months. ‘That said, we have reported signs of slowing growth in some cities, particularly in southern England where affordability levels are close to record highs. The slowdown might have been more apparent by now had the stamp duty change not been introduced,’ it says. A new analysis looking at listings also shows that for selected cities new supply has grown faster in the last three months than the average increase in supply seen over the last 12 months. For all cities in England and Wales excluding London new supply has grown 10% faster than the 12 month average, this rises to over 15% in London.In contrast, the relative change in sales over the last three months has registered a relative fall of 8% in London meaning that 8% fewer homes sold in the last three months compared to the 12 month average. The relative change in Bristol is 0%, while in larger regional cities, where house price growth has been picking up momentum, the relative change is sales is positive at up to 7% in Manchester. ‘This analysis shows how recent sales momentum in regional cities, and higher house price growth, appears to have held up over the referendum period. In contrast, the headwinds facing the London market ahead of the vote have resulted in more supply and relatively fewer sales pointing to slower house price growth in the months ahead,’ the report says. Hometrack explains that this is something which is clearly evident at a more granular level across London’s localised markets where the highest value markets in central London are registering low single digit growth while in lower value, outer areas of London growth is still 15% to 20% per annum although showing clear signs of losing momentum. ‘While this listings analysis provides a snapshot of the last quarter, the reality is that it is still very early days to assess the true impact of the EU referendum vote on activity and house prices. Our view remains that sales volumes are likely to slow and price growth will moderate over the second half of the year,’ the report adds. ‘The severity of a slowdown will depend upon the response of consumers and businesses to the uncertainty created by the decision to leave the EU and the impact this has on the economy. The early market activity data confirms our view that London will bear the brunt of any slowdown,’ it concludes. Source link

Category: Construction Industry Today | Subscribe to Construction Industry Today Feed Published Wed, Jul 13th 2016 Stoke on Trent City Council’s deputy leader toured the Recticel Insulation factory. Posted via Industry Today. Follow us on Twitter @IndustryToday Leading UK PIR manufacturer Recticel Insulation has played host to an equally leading local councillor.Cllr Abi Brown, deputy leader of Stoke on Trent City Council and leader of its Conservative Group, was recently a guest at Recticel’s state-of-the-art production plant in her Meir Park ward in the city. Hosted by commercial director Kevin Bohea she saw at first hand the multi-million £ investments that have helped to keep the European Recticel group at the forefront of insulation manufacture in the UK. Cllr Brown spent time learning about the company’s development and its recent multi-million £ investment in the plant, making it Europe’s most modern PIR manufacturing facility. Part of Recticel’s investment is the creation of a new line with full rebating ability (allowing the production of even better-performing insulation) which is now fully operational. This investment has led to the creation of 30 new jobs for local people. Kevin said: “We are always keen and proud to promote the investment we are making at our UK facility. It’s very important that we engage with Government to assist with their plans for improving the performance of buildings now and in the future, to assist with reducing energy consumption and carbon emissions.” ENDS  Source link

Salford City College has appointed international real estate advisor Savills to let restaurant space in the Orange Building at MediaCityUK, Salford Quays. The 6,740 sq ft (626 sq m) fully fitted unit includes a high specification commercial kitchen and can seat up to 140 customers across the main and private dining lounges.  It is situated on the first floor, overlooking the Lowry Theatre and adjacent to buildings occupied by the BBC, ITV and Holiday Inn as well as the MediaCityUK tram stop, central piazza and gardens.  Nearby leisure operators include Wagamama, Costa, Dockyard and Cau. Pete Scholes of the licensed leisure team at Savills comments: “This restaurant space occupies a prime location at the heart of MediaCityUK, close to numerous office buildings and leisure operators.  It is also well-placed to benefit from the plans for wider development within MediaCityUK.”   Source link