Real house and plot prices in South Africa
|
|
- Pauline Nelson
- 6 years ago
- Views:
Transcription
1 Real house and plot prices in South Africa By Cees Bruggemans, Chief Economist FNB 15 February 2012 After a period of exuberant distortion during the latter years of the recent property boom, during which existing house prices eventually reached levels that matched the average cost of newly built houses, a more normal relationship has been reestablished. Normal in the sense that as most houses age they lose value as wear and tear and changing fashions take their toll. In the US this rate of house depreciation is found to average 1% annually as houses age. South African housing stock, meaning Western style housing usually larger than 80m2 but excluding low-income housing and houses in townships, are found to have many similarities with US housing. Our post-ww2 housing stock today is on average estimated to be years old, a rough rule of thumb suggesting that existing houses should on average reflect a 25%-30% discount to newly built houses. Four years after the last property market peak, this relationship has effectively been re-established once again, according to Erwin Rode. Relative to reported new building costs average existing houses can currently be bought at a 25% discount. If a new house costs R100 to be build, its existing 25-year old equivalent is currently priced at R75 on average. This suggests that relative normal value has been reestablished Looking ahead, we note two likely developments, regarding building cost inflation and nominal house prices of existing homes, effectively a continuation for the time being of the recent past. Replacement costs have four components, namely the builder s profit margin (currently severely suppressed), the cost of building materials (which is driven higher by, inter alia, energy costs), the cost of labour and the cost of serviced land. Builder s profit margins cannot be suppressed further, given how much they have already been squeezed. Indeed, the only way is for them to increase again once normality is restored.
2 The energy costs going into the making of building materials (diesel, petrol, electricity) are rising in a rapid tempo, guaranteeing that building costs will keep climbing rapidly in coming years. Labour costs can rise less fast when hard times hit the building industry, but they do keep increasing. Adding up these three cost components and for the moment ignoring the cost of serviced land, the rise in building costs is going to remain a reality. At the same time, quite independently, we need to look at the demand and supply of existing houses. Here the expectation is that nominal house prices will only rise minimally for some years still, at low single-digit (0%-5%) annually. The reason for the minimal gain in nominal house prices is a substantial supply of existing houses wanting to be sold but not being matched by enough buyers coming forward and bidding house prices higher, with existing houses being worth only as much as what a willing buyer is prepared to pay (a very old home truth). The reason for this mismatch may have various explanations. For instance, the number of willing buyers may have shrunk temporarily as appetite for property purchases may have suffered, given the events of recent years (due to a sense of being overindebted, perceptions of falling house values, a new sense of priorities). Such sentiments are difficult to measure. More obvious is the apparent difficulty of willing buyers to raise finance, with the ability to do so in many instances having become constrained for the time being. The reason for this funding shortfall is not only the National Credit Act, but also because credit providers have adopted a new credit culture after the searing experiences worldwide and here at home since Instead of easily making mortgage funding available as had been the case for a generation, old disciplines have been rediscovered and reapplied, in terms of which most home mortgage borrowers are expected to maintain conservative debt loads, have stable sources of income, have sufficient income to meet all eventualities and can provide some equity as part of the property purchase while also financing all attendant costs of acquiring a new home. This proto-type new-model mortgage borrower, today probably still the exception, will take time becoming the norm, possibly a decade when counting from In the interim, though, many potential home buyers and borrowers still carry too much debt, have too little savings yet, may not earn enough to satisfy the credit providers and may not have stable enough income (when considering bonuses, options, piecework, commission, fee income, own business income, dividend
3 income, rental income and other volatile types of income). Only when this large pool of potential home buyers and borrowers has changed enough to be recognised as being new model would we expect to see faster mortgage lending and a resurgence in housing demand that might start to match existing supply and allow nominal house prices to rise faster again. This may be accompanied by a psychological shift in appetite as well, recuperating once again as it has always done in the past, though there are exceptions (such as Germany and Japan in the post-ww2 period) What are the main implications? With building cost inflation (incorporating builder s margins, building materials and labour) set to rise high-single digit (6%-8%) annually, with nominal prices of existing houses likely to rise only low single-digit (0%-5%) annually for the time being, possibly the next three to five years still, two things stare us in the face. Firstly, real values of existing houses may not have stopped falling and may have further to go as building replacement cost inflation keeps outstripping nominal house price gains. Or to put it in numbers, for instance 6% inflation minus 1% nominal house price gain translates into 5% real house price decline per year. Secondly, a further consequence is that the discount of old existing houses over newly built houses may widen further, from 25% now to something closer to 35%- 45% in five years time if we allow the logic to run unchecked for the moment. After the overshoot of the boom years (when existing house values rose, eventually overtaking building cost inflation and finally even matching new building costs, causing the discount of old over new to dwindle to near zero) we have since then gone the other way as nominal house prices started to stagnate. Today, we have re-established a neutral discount of 25% of old over new. Even so, ahead we may still face an undershoot as the discount of old over new keeps widening, with building costs rising steadily, yet nominal house prices mostly stagnating or rising only modestly as described. In turn, that presumably would create mounting pressure for people to reconsider their new build decision, instead opting for an existing house purchase. Would this mean that house building activity, which seemingly has stabilised of late at recessionary lows, could resume declining anew to even lower levels? With newly built houses only a small fraction of the supply of existing houses waiting to be sold, any such further shift away from new build to buying existing houses would not push up nominal house prices enough to undo this effect. Unless something else gives The building cost inflation as described is unlikely to slow down much, given
4 observable cost trends. If anything, at least the energy component of these costs could surprise to the upside. Still, could builders switch to cheaper materials, or shrink space or in other ways surprise in keeping back the rate of building cost increases? It isn t as if all these things haven t been tried before, but the times may become yet more pressing to become yet more inventive. It would seem unlikely at present that regulators or credit providers are going to change their definition of the new-model borrower to which they aspire. Even so, there may be refinements to mortgage lending criteria along the way, but the litmus test is the turnover of residential property, with transfer duty paid one indicator and credit growth by banks another. It remains to be seen how quickly potential borrowers succeed in adjusting to the requirements of credit providers, or whether credit providers may in fact relax some of their more stringent criteria as time goes by. Be that as it may. With the discount of old over new houses likely to still rise further for the time being, there is one more aspect to consider, namely the cost of serviced land. For the total cost of a newly built house is builder s profit, building materials and labour, but also the cost of the serviced plot. The latter is in a manner of speaking a very volatile shock absorber. In euphoric times, buyers bidding up existing house prices to undreamed heights are really bidding up the value of the underlying plot/land, for the house is simply what it is brick and mortar replaceable at a given building cost. At the cyclical peak, a choice serviced plot might have fetched R1.2 million. By now its market value may have already halved. But does it have further to go? If the discount gap between old and new houses were to widen further in coming years, and potential new buyers in greater numbers opt for buying existing houses as the more rational thing to do, one can see that one way the discount can be kept manageable is to value the serviced land/plot lower and lower Eventually, the stock of potential home buyers and mortgage borrowers will have acquired far more conservative financial profiles than they used to have, mainly because their incomes have kept rising, they now earn more, they have learned how to save more (or borrow differently) and even with unstable sources of income among them can meet credit provider tougher standards. As house demand improves and better matches existing supply, nominal house price inflation can start rising again. As it does, it can start catching up again with rising building cost inflation, eventually stabilising real house prices but also the discount of old over new houses, and then beyond that starting to shrink the discount anew.
5 And when this happens, the relentless downward pressure on serviced land values can finally ease, and such values can start rising again, depending on the evolving forces of supply and demand It would seem when going by appearances that the full playout of the adjustment in credit culture following the shock experiences of recent years has some way to go. In the process, nominal residential property values and building industry activity may continue to stagnate or increase only very modestly, while the value of serviced land is under severe downward pressure. Only when the country s pool of potential home buyers and borrowers has sufficiently adjusted to new realities, and nominal house prices start rising again along with improving demand, can the building industry expect rising activity levels, along with reviving values of serviced land. But that could still take a few years, according to some in the industry possibly another five years. Cees Bruggemans Chief Economist FNB Cees@fnb.co.za Twitter sound ceesbruggemans Register for free articles
Linkages Between Chinese and Indian Economies and American Real Estate Markets
Linkages Between Chinese and Indian Economies and American Real Estate Markets Like everything else, the real estate market is affected by global forces. ANTHONY DOWNS IN THE 2004 presidential campaign,
More informationHow Severe is the Housing Shortage in Hong Kong?
(Reprinted from HKCER Letters, Vol. 42, January, 1997) How Severe is the Housing Shortage in Hong Kong? Y.C. Richard Wong Introduction Rising property prices in Hong Kong have been of great public concern
More information14 September 2015 MARKET ANALYTICS AND SCENARIO FORECASTING UNIT. JOHN LOOS: HOUSEHOLD AND PROPERTY SECTOR STRATEGIST
14 September 2015 MARKET ANALYTICS AND SCENARIO FORECASTING UNIT JOHN LOOS: HOUSEHOLD AND PROPERTY SECTOR STRATEGIST 087-328 0151 john.loos@fnb.co.za THEO SWANEPOEL: PROPERTY MARKET ANALYST 087-328 0157
More informationFocus article: Metropolitan and rural housing market developments
Focus article: Metropolitan and rural housing market developments Introduction The upswing in the South African residential property market which started around was driven by a wide range of economic,
More information3 November rd QUARTER FNB SEGMENT HOUSE PRICE REVIEW. Affordability of housing
3 November 2011 3 rd QUARTER FNB SEGMENT HOUSE PRICE REVIEW JOHN LOOS: HOUSEHOLD AND PROPERTY SECTOR STRATEGIST 011-6490125 John.loos@fnb.co.za EWALD KELLERMAN: PROPERTY MARKET ANALYST 011-6320021 ekellerman@fnb.co.za
More informationMueller. Real Estate Market Cycle Monitor Third Quarter 2018 Analysis
Mueller Real Estate Market Cycle Monitor Third Quarter 2018 Analysis Real Estate Physical Market Cycle Analysis - 5 Property Types - 54 Metropolitan Statistical Areas (MSAs). It appears mid-term elections
More informationAn overview of the real estate market the Fisher-DiPasquale-Wheaton model
An overview of the real estate market the Fisher-DiPasquale-Wheaton model 13 January 2011 1 Real Estate Market What is real estate? How big is the real estate sector? How does the market for the use of
More information[03.01] User Cost Method. International Comparison Program. Global Office. 2 nd Regional Coordinators Meeting. April 14-16, 2010.
Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized International Comparison Program [03.01] User Cost Method Global Office 2 nd Regional
More informationShared Ownership: The Absolute Truth
Shared Ownership: The Absolute Truth Shared Ownership: The Absolute Truth Are you looking to buy a property and realising how difficult it is to find something that you want, in an area you like at a price
More informationA long view of Australia s housing affordability crisis. Dr Judith Yates. Associate Professor in the School of Economics, University of Sydney
6> Housing affordability > 16 June 2017 > Melbourne A long view of Australia s housing affordability crisis Dr Judith Yates Associate Professor in the School of Economics, University of Sydney 55 Rapid
More informationHousing & Construction Review
GavekalDragonomics China Chartbook Housing & Construction Review November 2014 Table of contents Part 1: Fundamental outlook A maturing market Part 2: Housing policy Focus on migration and redevelopment
More information3 October 2017 KEY POINTS
3 October 2017 FNB HOME LOANS: MARKET ANALYTICS AND SCENARIO FORECASTING UNIT JOHN LOOS: HOUSEHOLD AND PROPERTY SECTOR STRATEGIST 087-328 0151 John.loos@fnb.co.za THEO SWANEPOEL: PROPERTY MARKET ANALYST
More informationCOMPARISON OF THE LONG-TERM COST OF SHELTER ALLOWANCES AND NON-PROFIT HOUSING
COMPARISON OF THE LONG-TERM COST OF SHELTER ALLOWANCES AND NON-PROFIT HOUSING Prepared for The Fair Rental Policy Organization of Ontario By Clayton Research Associates Limited October, 1993 EXECUTIVE
More informationSell Your House in DAYS Instead of Months
Sell Your House in DAYS Instead of Months No Agents No Fees No Commissions No Hassle Learn the secret of selling your house in days instead of months If you re trying to sell your house, you may not have
More informationW H O S D R E A M I N G? Homeownership A mong Low Income Families
W H O S D R E A M I N G? Homeownership A mong Low Income Families CEPR Briefing Paper Dean Baker 1 E X E CUTIV E S UM M A RY T his paper examines the relative merits of renting and owning among low income
More informationDo you know what percentage of people in South Africa will retire rich at the age of 65?
5 things you need to know to create wealth through property Do you know what percentage of people in South Africa will retire rich at the age of 65? Do you know how many people will either be poor, reliant
More informationEconomic and monetary developments
Box 4 House prices and the rent component of the HICP in the euro area According to the residential property price indicator, euro area house prices decreased by.% year on year in the first quarter of
More informationJoint Center for Housing Studies Harvard University. Rachel Drew. July 2015
Joint Center for Housing Studies Harvard University A New Look at the Characteristics of Single-Family Rentals and Their Residents Rachel Drew July 2015 W15-6 by Rachel Drew. All rights reserved. Short
More informationReal Estate Reference Material
Land Value Inflation Land valuation The value of land is determined by the usual operation of market forces demand and supply. The demand for land is largely a derivative of its earning power when put
More information16 April 2018 KEY POINTS
16 April 2018 MARKET ANALYTICS AND SCENARIO FORECASTING UNIT JOHN LOOS: HOUSEHOLD AND PROPERTY SECTOR STRATEGIST FNB HOME LOANS 087-328 0151 john.loos@fnb.co.za THULANI LUVUNO: STATISTICIAN 087-730 2254
More informationCity and County of San Francisco
City and County of San Francisco Office of the Controller - Office of Economic Analysis Residential Rent Ordinances: Economic Report File Nos. 090278 and 090279 May 18, 2009 City and County of San Francisco
More informationState of the Housing Market in Bristol 2013
State of the Housing Market in Bristol 2013 Housing Stock Bristol has 190,000 homes, and plans to increase this by around 13,000 by 2026. Currently 15% of stock is owned by the city council, 6% by housing
More informationSekisui House, Ltd. < Presentation >
Sekisui House, Ltd. Transcript for Earnings Results Briefing for the Second Quarter of FY2018 (Telephone Conference) Date: Participants: September 6 th, 2018, Thursday 17:00 18:00 JPT Shiro Inagaki, Representative
More informationREAL ESTATE MARKET OVERVIEW 1 st Half of 2015
REAL ESTATE MARKET OVERVIEW 1 st Half of 2015 With Comparisons to the 2 nd Half of 2014 September 4, 2015 Prepared for: First Bank of Wyoming Prepared by: Ken Markert, AICP MMI Planning 2319 Davidson Ave.
More informationAustralian home size hits 20-year low
Australian home size hits 20-year low CommSec Home Size Trends Report Economics November 17 2017 The average floor size of an Australian home (houses and apartments) has fallen to a 20-year low. Data commissioned
More informationQueens Drive regeneration: Swindon Council's unaffordable housing strategy
Queens Drive regeneration: Swindon Council's unaffordable housing strategy Swindon's housing crisis has been described as a crisis of affordability. Much of the town's housing in unaffordable for a large
More informationHousing Markets: Balancing Risks and Rewards
Housing Markets: Balancing Risks and Rewards October 14, 2015 Hites Ahir and Prakash Loungani International Monetary Fund Presentation to the International Housing Association VIEWS EXPRESSED ARE THOSE
More informationthings to consider if you are selling your house
things to consider if you are selling your house KEEPINGCURRENTMATTERS.COM WINTER 2012 EDITION PAGE TABLE OF CONTENTS 1 3 5 7 9 House Prices: Where They Will Be in the Spring Understanding the Impact OF
More informationRapid recovery from the Great Recession, buoyed
Game of Homes The Supply-Demand Struggle Laila Assanie, Sarah Greer, and Luis B. Torres October 4, 2016 Publication 2143 Rapid recovery from the Great Recession, buoyed by the shale oil boom, has fueled
More informationECONOMIC AND MONETARY DEVELOPMENTS
Box EURO AREA HOUSE PRICES AND THE RENT COMPONENT OF THE HICP In the euro area, as in many other economies, expenditures on buying a house or flat are not incorporated directly into consumer price indices,
More informationPROPERTY BAROMETER Residential Property Affordability Review The recently improving Housing Affordability trend stalled in the 1 st quarter of 2017
21 June 2017 MARKET ANALYTICS AND SCENARIO FORECASTING UNIT JOHN LOOS: HOUSEHOLD AND PROPERTY SECTOR STRATEGIST FNB HOME LOANS 087-328 0151 john.loos@fnb.co.za LIZE ERASMUS: STATISTICIAN 087-335 6664 lize.erasmus@@fnb.co.za
More informationWHAT TO WATCH IN 2018 FOR THE HOUSING MARKET & PROPERTY MANAGEMENT INDUSTRY
WHAT TO WATCH IN 2018 FOR THE HOUSING MARKET & PROPERTY MANAGEMENT INDUSTRY As a property manager, the day-to-day responsibilities that demand your attention can be all-consuming. It s rare that you get
More informationHOUSING MARKET OUTLOOK
HOUSING MARKET INFORMATION HOUSING MARKET OUTLOOK Ottawa 1 C A N A D A M O R T G A G E A N D H O U S I N G C O R P O R A T I O N Date Released: Fall 2017 Figure 1 10,000 8,000 6,000 4,000 2,000 0 Ottawa
More informationTwentieth century trends in farmland values
Twentieth century trends in farmland values Farmland values have exhibited unprecedented increases in recent years. Nationwide, the compound annual rate of increase in farmland prices has been on the order
More informationCONTINUED STRONG DEMAND
Rental Housing Although slowing, renter household growth continued to soar in 13. The strength of demand has kept rental markets tight across the country, pushing up rents and spurring new construction.
More informationOBSERVATION. TD Economics IS THE AMERICAN HOUSING REBOUND SUSTAINABLE?
OBSERVATION TD Economics IS THE AMERICAN HOUSING REBOUND SUSTAINABLE? Highlights 2012 was a very good year for the U.S. housing market. Home prices were up almost 8% and housing starts by close to 30%.
More informationAustralian home size hits 22-year low
Australian home size hits 22-year low CommSec Home Size Trends Report Economics November 16 2018 The average floor size of an Australian home (houses and apartments) has fallen to a 22-year low. Data commissioned
More informationMultifamily Supply: Too Much or Not Enough
Multifamily Supply: Too Much or Not Enough A BERKSHIRE RESEARCH VIEWPOINT October 2016 1 Multifamily Supply: Too Much or Not Enough A BERKSHIRE RESEARCH VIEWPOINT October 2016 SUMMARY With an expected
More informationConnecticut First Nine Months Housing Report 2014
Connecticut First Nine Months Housing Report 2014 First Nine Months of 2014 Highlight Positive Outlook for Multi-family Home Construction Millennial buyers are finally increasing their rate of household
More informationCANADA ECONOMICS FOCUS
CANADA ECONOMICS FOCUS House prices likely to fall for several years 3 rd Feb. 211 The recent housing boom has resulted in the largest rises in house prices ever seen in Canada, which have been similar
More informationHow Selling Your House to a Real Estate Investor Stacks Up Against Your Other Options
How Selling Your House to a Real Estate Investor Stacks Up Against Your Other Options Pros, cons, costs, and timeline of each option So, you need to sell your house. Selling in a market like today s can
More informationCycle Monitor Real Estate Market Cycles Third Quarter 2017 Analysis
Cycle Monitor Real Estate Market Cycles Third Quarter 2017 Analysis Real Estate Physical Market Cycle Analysis of Five Property Types in 54 Metropolitan Statistical Areas (MSAs). Income-producing real
More informationFNB-TPN RESIDENTIAL YIELDS REVIEW
FNB-TPN RESIDENTIAL YIELDS REVIEW 17 November 2015 John Loos, Household and Property Sector Strategist Tel: (087) 328 0151 Cell:083-453 8096 E-mail: john.loos@fnb.co.za Website: http://blog.fnb.co.za/category/economics/
More informationThe Coldwell Banker Carlson Real Estate Market Report
The Coldwell Banker Carlson Real Estate Market Report 2017 Year-End Stowe Area Report Our 2017 Year-End Market Report uses market-wide data, based on transactions that closed in 2017 in the Multiple Listing
More informationHamilton s Housing Market and Economy
Hamilton s Housing Market and Economy Growth Indicator Report November 2016 hamilton.govt.nz Contents 3. 4. 5. 6. 7. 7. 8. 9. 10. 11. Introduction New Residential Building Consents New Residential Sections
More informationI ve heard it is possible to use the same deposit to buy multiple houses. How do you do that?
Fs Where do you invest? We invest in the UK s #1 BTL hotspot, the East Midlands. Growth in the East Midlands has been second only to some London Boroughs in recent reports. That, coupled with the fact
More informationD S P Housing & Development Consultants
Woking Borough Council Community Infrastructure Levy Viability Assessment Follow-Up Ref: DSP 14263 Property market update house price trends March 2014 Dixon Searle LLP The Old Hayloft 28C Headley Road
More informationPresented to Membership of the Lake Gaston Association. Christine Thompson. June 10, 2014
Presented to Membership of the Lake Gaston Association Christine Thompson June 10, 2014 About your speaker Christine Thompson Real Estate Sales & Service at Lake Gaston for 13+ years Advanced training
More informationCommercial Property Price Indexes and the System of National Accounts
Hitotsubashi-RIETI International Workshop on Real Estate and the Macro Economy Commercial Property Price Indexes and the System of National Accounts Comments of Robert J. Hill Research Institute of Economy,
More informationIrish House Prices: Gliding into the Abyss?
Irish House Prices: Gliding into the Abyss? Morgan Kelly 21st December 2006 Offering no evidence except wishful thinking, estate agents and politicians assure us that we have nothing to worry about: the
More informationThese construction records just might have some pretty interesting stories to tell. (Spoiler alert: they do!)
Is Abandoned Construction an Early Signal of Economic Change? BuildFax specializes in translating construction data from building permits into property condition and history. But what about the building
More informationON THE HAZARDS OF INFERRING HOUSING PRICE TRENDS USING MEAN/MEDIAN PRICES
ON THE HAZARDS OF INFERRING HOUSING PRICE TRENDS USING MEAN/MEDIAN PRICES Chee W. Chow, Charles W. Lamden School of Accountancy, San Diego State University, 5500 Campanile Drive, San Diego, CA 92182, chow@mail.sdsu.edu
More informationSolutions to Questions
Uploaded By Qasim Mughal http://world-best-free.blogspot.com/ Chapter 7 Variable Costing: A Tool for Management Solutions to Questions 7-1 Absorption and variable costing differ in how they handle fixed
More informationTHINGS TO CONSIDER WHEN SELLING YOUR HOUSE
THINGS TO CONSIDER WHEN SELLING YOUR HOUSE SPRING 2017 EDITION TABLE OF CONTENTS 3 5 REASONS TO SELL THIS SPRING WHAT S HAPPENING IN THE HOUSING MARKET? 5 LACK OF LISTINGS SLOWING DOWN THE HOUSING MARKET
More informationResponse to Communities and Local Government Committee Inquiry into capacity in the homebuilding industry
Response to Communities and Local Government Committee Inquiry into capacity in the homebuilding industry Page 1 of 7 1. Introduction This paper is LendInvest s response to the review by the Communities
More informationDan Immergluck 1. October 12, 2015
Examining Recent Declines in Low-Cost Rental Housing in Atlanta, Using American Community Survey Data from 2006-2010 to 2009-2013: Implications for Local Affordable Housing Policy Dan Immergluck 1 October
More informationPROPERTY BAROMETER FNB House Price Index Early signs of the positive national sentiment shift impacting on national house price trends
5 June 2018 MARKET ANALYTICS AND SCENARIO FORECASTING UNIT JOHN LOOS: HOUSEHOLD AND PROPERTY SECTOR STRATEGIST 087-328 0151 john.loos@fnb.co.za THULANI LUVUNO: ANALYST 087-730 2254 thulani.luvuno@fnb.co.za
More informationWinning with Foreclosures
Buying Bank-Owned Foreclosures (REO) and Short Sales Courtesy of Name: Phone: Email: Diane Van Slyke 209.681.4275 ib4u@kw.com Terms you should know: 1. Distressed Property: This term refers to all pre-foreclosure
More informationSECTOR REPORT HOUSING MARKET
SECTOR REPORT HOUSING MARKET UPDATE NOVEMBER 2017 www.colliers.nl 28 DEMAND The number of residential property transactions remained virtually unchanged in the third quarter compared to last year. This
More informationOFFICE SPACE DEMAND APPENDIX 6 PERSPECTIVES AND TERMS VARY
APPENDIX 6 OFFICE SPACE DEMAND O ffice space demand is sensitive to space requirement assumptions, rent levels, tenant type and possibly culture. In many models, such as the one illustrated in Exhibit
More informationThe Property Market Cycle
STEP 1D 1 The Market Cycle When you start your research on properties to renovate, the very first thing you ll need to look at, is what stage your suburbs are actually in, relevant to the property investment
More informationLeasehold discount in dwelling prices: A neglected view to the challenges facing the leasehold institution
Leasehold discount in dwelling prices: A neglected view to the challenges facing the leasehold institution Key words: dwelling prices, leasehold, public land SUMMARY City of Helsinki leases some 2000 hectares
More informationThe Affordable Development Conundrum
The Affordable Development Conundrum September 2016 A new, interactive data tool from the Urban Institute and National Housing Conference helps explain one of the industry's Catch-22s: Why developers can't
More informationHOUSING MARKETS. Strength in Early 2005 Pushed Most National Housing Indicators into Record Territory
HOUSING MARKETS Despite another record-setting performance, housing markets showed clear signs of cooling late in 2005. As mortgage interest rates moved up and house prices soared, home sales turned down
More informationOahu Real Estate December 2014 Year End Report
Oahu Real Estate December 2014 Year End Report By: Mike Gallagher Real Estate, Inc. In order to view the next large Excel Spread depicting all Areas around Oahu and how they performed over twelve months
More informationCharacteristics of Recent Home Buyers
Characteristics of Recent Home Buyers Special Studies, February 1, 2019 By Carmel Ford Economics and Housing Policy National Association of Home Builders Introduction To analyze home buyers NAHB uses the
More informationChairman, Deputies and Senators,
Opening Statement by Mr. Brendan McDonagh, Chief Executive of NAMA, to the Joint Committee on Finance, Public Expenditure and Reform Thursday, 13 July 2017 Chairman, Deputies and Senators, You invited
More informationJournal of the Statistical and Social Inquiry Society of Ireland Vol. XXXIV. (read before the Society, 14 April 2005)
Journal of the Statistical and Social Inquiry Society of Ireland Vol. XXXIV SYMPOSIUM ON THE IRISH HOUING MARKET: ISSUES AND PROSPECTS (read before the Society, 14 April 2005) Abstract The housing sector
More informationBuying BIPCo Frequently Asked Questions of the EUTG August 2016
1. What is the proposal? 2. Why should the Town purchase BIPCo? 3. Is the price fair? 4. What are the detailed steps and timing? 5. How will BIPCo be run? 6. What are the benefits of community control
More informationBusiness, Energy and Industrial Strategy Committee Energy Efficiency Inquiry Written Submission from ARLA Propertymark January 2019
Business, Energy and Industrial Strategy Committee Energy Efficiency Inquiry Written Submission from ARLA Propertymark January 2019 Background 1. ARLA Propertymark is the UK s foremost professional and
More informationThis PDF is a selection from a published volume from the National Bureau of Economic Research
This PDF is a selection from a published volume from the National Bureau of Economic Research Volume Title: NBER Macroeconomics Annual 2015, Volume 30 Volume Author/Editor: Martin Eichenbaum and Jonathan
More informationRENTAL PRODUCTION AND SUPPLY
RENTAL PRODUCTION AND SUPPLY Despite a sharp uptick in the number of renter households, construction of multifamily units for rent declined in 27 for the fifth straight year. Even so, growth in the rental
More informationWilliam & Mary Law School Scholarship Repository
College of William & Mary Law School William & Mary Law School Scholarship Repository William & Mary Annual Tax Conference Conferences, Events, and Lectures 1971 Leasing Arrangements Lawrence P. Roesen
More informationHOUSING MARKET OUTLOOK
HOUSING MARKET INFORMATION HOUSING MARKET OUTLOOK Kitchener-Cambridge-Waterloo CMAs C A N A D A M O R T G A G E A N D H O U S I N G C O R P O R A T I O N Date Released: Fall 2017 Figure 1 5,000 4,000 3,000
More informationMarket Report Summary 2006 Northwest Arkansas. Prepared By Judy Luna. Copyright 2007 Judy Luna
Market Report Summary 26 Northwest Arkansas Prepared By Judy Luna Copyright 27 Judy Luna Northwest Arkansas Market Area For the purposes of this report, the Northwest Arkansas market area includes Washington
More informationBlackstone-Fueled Single-Family Home Boom Lifts Chicago
ESTM1998 MACK INVESTMENTS Blackstone-Fueled Single-Family Home Boom Lifts Chicago By: Bloomberg February 14, 2014 The tan, three-bedroom house on Chicago s North Side sits half a block from a Family Dollar
More informationReal Estate Reference Material
Valuation Land valuation Land is the basic essential of property development and unlike building commodities - such as concrete, steel and labour - it is in relatively limited supply. Quality varies between
More informationVolume Title: Well Worth Saving: How the New Deal Safeguarded Home Ownership
This PDF is a selection from a published volume from the National Bureau of Economic Research Volume Title: Well Worth Saving: How the New Deal Safeguarded Home Ownership Volume Author/Editor: Price V.
More informationResidential Real Estate, Demographics, and the Economy
Residential Real Estate, Demographics, and the Economy Presented to: Regional & Community Bankers Conference Yolanda K. Kodrzycki Senior Economist and Policy Advisor Federal Reserve Bank of Boston October
More informationThe Impact of Distressed Properties on Neighboring Values... 8
why now is a great time to sell 2nd QUARTER 2011 table of contents 5 Reasons You Should Consider Selling Now... 1 Will I Get More Money If I Wait?... 3 Almost 14,000 Houses Sold Yesterday... 4 What Exactly
More informationDEVELOPMENT OF THE DWELLING CONSTRUCTION AND REAL ESTATE MARKET DURING THE LAST DECADE
DEVELOPMENT OF THE DWELLING CONSTRUCTION AND REAL ESTATE MARKET DURING THE LAST DECADE Olga Smirnova, Merike Sinisaar Statistics Estonia Construction and real estate are the fields of activity many people
More informationOrange County Housing Report: Too Much Noise. March 11, Good Afternoon!
Orange County Housing Report: Too Much Noise March 11, 2018 Good Afternoon! Everybody seems to have an opinion about the direction of the housing market. Ignore the Noise: From talk of a housing bubble
More informationTHINGS TO CONSIDER WHEN SELLING YOUR HOUSE SPRING 2017 EDITION
THINGS TO CONSIDER WHEN SELLING YOUR HOUSE SPRING 2017 EDITION TABLE OF CONTENTS 3 5 REASONS TO SELL THIS SPRING WHAT S HAPPENING IN THE HOUSING MARKET? 5 LACK OF LISTINGS SLOWING DOWN THE HOUSING MARKET
More informationaustralia s 106 Hot suburbs, up to 128% rental growth! annual best rental report exclusive! How we found our mega bargains!
annual best rental report Property contents May 2012 $9.95 (GST incl.) exclusive! $9.95 (GST incl.) australia s BEST RENTAL suburbs 106 Hot suburbs, up to 128% rental growth! How we found our mega bargains!
More informationHM Treasury consultation: Investment in the UK private rented sector: CIH Consultation Response
HM Treasury Investment in the UK private rented sector: CIH consultation response This consultation response is one of a series published by CIH. Further consultation responses to key housing developments
More informationThe Estonian Economy. Macro Research. Housing market risks diluted. Macro Research - The Estonian Economy. 8 July, 2016.
Macro Research 8 July, The Estonian Economy Newsletter Housing market risks diluted The surge in supply has almost halted price growth Construction sector investments low Real estate prices relative to
More informationAffordable Housing Policy. Economics 312 Martin Farnham
Affordable Housing Policy Economics 312 Martin Farnham Introduction Housing affordability is a significant problem in Canada (especially in Victoria) There are tens of thousands of homeless in Canada Many
More informationREPORT - RIBA Student Destinations Survey 2017
REPORT - RIBA Student Destinations Survey 2017 Introduction The RIBA Student Destinations Survey is a partnership project between the RIBA and Northumbria University. It is a study to be delivered over
More informationTHE IMPACT OF RESIDENTIAL REAL ESTATE MARKET BY PROPERTY TAX Zhanshe Yang 1, a, Jing Shan 2,b
THE IMPACT OF RESIDENTIAL REAL ESTATE MARKET BY PROPERTY TAX Zhanshe Yang 1, a, Jing Shan 2,b 1 School of Management, Xi'an University of Architecture and Technology, China710055 2 School of Management,
More informationHousing as an Investment Greater Toronto Area
Housing as an Investment Greater Toronto Area Completed by: Will Dunning Inc. For: Trinity Diversified North America Limited February 2009 Housing as an Investment Greater Toronto Area Overview We are
More informationSelf-Builds Independent
What you need to know Self-Builds Offering Independent Mortgage Advice Contact Us: Telephone: +44 (0) 1983 616666 Look us up: www.prospectmortgage.co.uk About 12,000 people build their own homes in the
More informationU.S. Home Construction Lags Behind Broad Economic Rebound...
This copy is for your personal, non-commercial use only. To order presentation-ready copies for distribution to your colleagues, clients or customers visit http://www.djreprints.com. http://www.wsj.com/articles/u-s-home-construction-lags-behind-broad-economic-rebound-1481914669
More informationResidential September 2010
Residential September 2010 Karl L. Guntermann Fred E. Taylor Professor of Real Estate Adam Nowak Research Associate For the first time since March, house prices turned down slightly in August (-2 percent)
More informationTrulia s Rent vs. Buy Report: Full Methodology
Trulia s Rent vs. Buy Report: Full Methodology This document explains Trulia s Rent versus Buy methodology, which involves 5 steps: 1. Use estimates of median rents and for-sale prices based on an area
More informationHouse prices in the latest three months (March 2014 May 2014) were 2.0% higher than in the preceding three months (December February2014).
PROPERTY REPORT JULY 2014 House Prices Rightmove Not a huge jump this month according to Rightmove. Key points New seller asking prices at virtual standstill, up by just 0.1% (+ 272) this month More regions
More informationMedian Income and Median Home Price
Homeownership Remains Unaffordable; Rental Affordability Showing Signs of Improvement Richard E. Taylor, Research Manager at MaineHousing MaineHousing has released the 217 Maine Homeownership and Rental
More informationHousing Supply Restrictions Across the United States
Housing Supply Restrictions Across the United States Relaxed building regulations can help labor flow and local economic growth. RAVEN E. SAKS LABOR MOBILITY IS the dominant mechanism through which local
More informationWhat You Need to Know About Renting to Own and Contracts for Deed
Fact Sheet What You Need to Know About Renting to Own and Contracts for Deed BE CAREFUL! Buying a house is complicated. Many people lose money and time when they rent a house with an option to buy it,
More informationBriefing: Rent Convergence
30 September 2013 Briefing: Rent Convergence Summary of key points: The end of rent convergence threatens to cause issues with viability and capacity for some of our members. The Federation has communicated
More informationDETACHED MULTI-UNIT APPROVALS
HIA New Home Sales DETACHED MULTI-UNIT APPROVALS SALES MULTI-UNIT DETACHED A monthly update on the sales of new homes September 214 MULTI-UNIT SALES REACH New Cyclical Peak The HIA New Home Sales Report
More information