Increased Demand for US Holiday Homes

Although house prices in many regions of the US are still falling, the luxury holiday home sector is proving to be far more resilient. A number of estate agents are reporting that they are receiving far more enquiries than they have had for years.

It certainly looks like a good time to buy provided you intend to invest for the long term, as property which was once out of reach to many is now far more affordable. A three-bedroom home in Vail, Colorado which changed hands for $3.3 million in 2008, was sold in February for just $2.5 million.

Another property on Hilton Head Island, South Carolina previously sold in June 2006 for $1.2 million, was bought for just $750,000 in April this year.

Overall the average price for holiday homes was $150,000 in 2010, which is a reduction of around 25% since 2006, however homes in the multimillion dollar range have fared much better, and this sector is recovering much more quickly.

The recovery of the second homes market hasn't gone unnoticed, as on Palm Beach Island, Florida, sales have increased by 50% to the year ending June 30, while sales in the Hamptons have risen by 59% during the second quarter compared to a year earlier. Sales in Aspen, Colorado have increased by 10% to the year ending May 31.

In spite of these figures being very encouraging, there is no suggestion of a property boom, as the types of properties which are selling well are those located near water or near ski slopes. Properties in less desirable areas are still taking a long time to sell. Another problem is financing, as banks tend to be much warier about second home mortgages, particularly the so-called "jumbo" loans which are more than federally guaranteed limits.

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Sellers in Spain told to set realistic prices to achieve sales

According to a property expert in Spain, people need to be more realistic when pricing their property if they really want to sell. José Luis Jimeno, who is the managing director of Noteges, a property education website feels that many owners of Spanish property have failed to grasp how far prices have fallen here, and he thinks that some sellers may need to drop their price by as much as 50% in order to attract a buyer.

Anyone trying to sell property on the coast may need to cut their price even further as there is a huge oversupply of residential properties in these areas. Unfortunately Jimeno also thinks that prices could have further to fall, and although he understands that this isn't a good time to sell, those who have no alternative need to do everything possible to attract a buyer.

Latest reports from the Spanish property market index confirm that this gloomy view as they reveal property prices in Spain fell in June compared to May, and the largest decreases were seen on the Mediterranean coast where prices dropped by 8.7%. The Balearics fared a little better as prices fell by 7%, but prices in the major cities fell by 7.3%.

On average Spanish property prices fell by 6.6% in June when compared to June 2010. The number of sales is also dropping as the National Statistics Institute in Madrid showed that numbers declined by 18.3% in May compared to May 2010, and that the number of transactions had fallen for three consecutive months.

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Spanish theme park is set to open sooner

The new Paramount theme park in Murcia is apparently scheduled to open a year earlier than originally planned. It had been scheduled to open in 2015 but construction plans have been brought forward due to increased interest from foreign investors and the anticipated opening of the new international airport in Murcia. The completion of the airport which will have capacity for 3 million passengers a year, including many who currently use the airport at Alicante was vital in securing this theme park. The theme park will be huge as it will include several Disney type worlds and six, four and five-star resorts as well is a 15,000 seat auditorium.

It's now expected that work will begin early in 2012 and will be completed by 2014. The new airport is due to open in spring 2012, and should ensure that Murcia is well and truly on the tourist map. Estate agents are already experiencing increased interest from those seeking to buy property due to the enhanced rental opportunities which will be available in the near future.

Foreign investors who have taken an interest in the theme park include the Russian billionaire and casino operator Oleg Boyko, who visited Murcia earlier on in the year to assess the areas potential. Another €1.3 billion are needed to complete the Paramount theme park, but there are to be several international roadshows in the UK, the UAE and China later on in the year, and it's anticipated that these should raise the necessary funds to complete the park and the attached retail complexes. The completion of this project will also coincide with a new high-speed AVE rail link to Murcia.

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Egypt’s Muslim Brotherhood Campaigning for September Elections

Egypt’s Muslim Brotherhood group, which has formed the Freedom and Justice Party, is campaigning hard ahead of September’s elections as it hopes to win up to half the parliamentary seats. It is basing its campaign on a plan to trim the country’s deficit which would bring foreign investors back into Egypt.

Before the uprising in February, the Brotherhood was one of the largest opposition groups. Its leader, Khairat el-Shater is quoted as saying “It’s always better for any country to build on the basis of investment and not loans.”

Interest payments on public debt account for 22% of spending, up from 20% last year. It is the third largest bill, after wages and subsidies. In fact Egypt’s spending on debt costs more than the combined costs of health care, education and housing. The average yield on public debt is estimated to increase from 10.7% last year to 12.5%.

The Muslim Brotherhood was founded in 1928, and after decades of suppression is now speaking out about its views on governing the country. The group is well aware that some foreign investors may be put off by a government that has a large Muslim Brotherhood representation, and they want to reassure investors that they are business owners and professionals.

Egypt is already taking steps to cut international borrowing, and has turned down a $3 billion loan from the IMF, preferring instead to get finance from domestic borrowing and aid from Arab countries. The UAE has already pledged $3 billion of support for Egypt. The economy in Egypt is expected to expand by 3.2% this year, and although this is the lowest rate for about a decade, it is still better than many western countries.

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Florida Property Market Continues to Show Signs of Improvement

The Florida property market continues to show signs of life, as sales of condominiums in Miami have increased by 46% over the last year, and sales of family homes have improved by 20%.

In May, sales of condominiums increased by 1.1% on April while house sales increased by a respectable 5.4%, according to a report from Miami’s Association of Realtors. An incredible 60% of closed sales were cash transactions, while international sales accounted for 60% of this figure. International sales accounted for 90% of new construction sales.

It’s not just Miami that is seeing a turnaround in the market, as sales throughout the whole state have increased. Condo sales have increased by 17%, while single family home sales have increased by 3%.

According to Jack Levine, chairman of the National Association of Realtors, the performance of the housing market in Miami is exceeding expectations, with sales now at their highest levels since the boom years.

At the moment there is just a 7.4 month’s supply of housing, as both international and American buyers take advantage of bargain prices. However the high number of foreclosures and short sales is continuing to have an effect on the market, as 57% of all closed sales during April were distressed in some way.

The good news is that prices seem to be gradually recovering in Miami, as even though prices for single family homes in May were 8% lower than a year ago, they had increased by 7% from the previous month. Condominium prices were 1% lower compared with a year earlier, but had increased by 7.4 compared with April.

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