Friday, 30 September 2011

Norwegian Homes Are the Greenest in the World

Research by the Royal Institute of Chartered Surveyors has shown that Norway is the top country in the world for reducing carbon emissions in the built environment. Brazil is second, while the UK comes in third, but apparently there is still considerable room for improvement. Australia and China come in fourth and fifth, but Russia Luxembourg and Canada are bottom of the list, with Greece and South Africa just above them.

Although the bottom of the list shows little movement, there has been considerable change in the middle ranking is. Between 2008 and 2010, Finland, Sweden, France, the USA, Belgium and the Slovak Republic have made improvements, while India, Italy and Ireland have slipped further down the rankings.

The RICS Global Zero Carbon Capacity Index has looked at 34 individual countries over the last three years to see how they are progressing in their carbon reduction policies.

The UK has a considerable number of carbon reduction policies in place which accounts for its high ranking in the index, but doesn't do so well in the residential sector where it remains one of the worst performers, although it is gradually improving. Norway has been top of the ranking for three years running, but Brazil has moved up six places due to its high contribution of renewable energy and low energy use. In contrast,

Germany has slipped down the rankings due to its poor performance in residential energy use and is now the fifth worst performer. This particular index has remained pretty stable from year to year due to the lead time and investment required in renewable energy infrastructure to make any appreciable difference to a country's energy use.

Saturday, 24 September 2011

Home Sales in California Increase in August

The number of home sales in California increased by 8.8% in August compared to July, and by 10.2% compared to August 2010, and all in all an estimated 37,734 homes were sold throughout the state.

The average number of sales for August is 48,344 according to DataQuick who has been keeping statistics since 1988. Sales reached an all-time low in 1992 with just 29,764 homes being sold and an all-time high of 73,285 in 2005.

The median price for a Californian home was $249,000 in August, a decrease of 1.2% compared to July, and a decrease of 4.2% on August 2010. House prices have decreased for 11 months in a row after 11 months of increases.

The lowest price for this housing cycle was recorded in April 2009 when prices were just $221,000, compared to the peak in early 2007 of $484,000, and property prices are still being affected by the large number of distress sales which accounted for more than 50% of the resale market in August.

Foreclosures accounted for 34.6% of existing house sales last month, down from 35.6% in August 2010. The highest recorded figure for foreclosures was in debris 2009, at 58.5%. Shop sales accounted for 17.8% of resales in August, down from 18% in August 2010.

Homebuyers are also taking out smaller mortgages, as the typical mortgage payment for August was just $982, which is the lowest amount on record, down from $1045 in August 2010. This is a massive 64.4% less than the peak of the current cycle which was reached in June 2006.

Saturday, 17 September 2011

Israelis Protest over Rising Property Prices and Rents

Israelis have been protesting over rising property prices and rents since mid-July, and although the initial protest began in an upmarket section of Tel Aviv, it has now spread to Jerusalem, Haifa and Beersheba.

Property prices here have increased by around 40% during the last three years, and this is partly due to the fact that planning and construction here is extremely slow. Property prices increased by 13.7% between April 2010 and April 2011, which is around triple the rate of inflation, and in the Knight Frank Global House Price Index for the first quarter of this year, Israel was ranked fourth behind Hong Kong, India and Taiwan.

Rents have also increased substantially, and many Israelis are now complaining that Tel Aviv has become a city for the rich. Demand for housing has often exceeded supply in Israel, but the situation has become much worse over the last few years due to low interest rates and easier access to housing loans and mortgages.

The economy here is in pretty good shape and is expected to grow by around 4.8% this year, meaning that many more Israelis are looking to buy better homes. The property market here is somewhat unique, as 93% of the land is owned or managed by the government which dates back to the founding of the nation in 1948 and a policy designed to preserve the Jewish state. Most property sales here tend to be long-term leases, so the government has unusually high control over the way the land is used.

Builders have to negotiate large amounts of bureaucracy in order to gain construction permits, and this has constricted the supply of apartments, increasing the prices.

The Israeli Prime Minister Benjamin Netanyahu has promised to cut red tape, and has also pledged to build 50,000 new homes during the next 18 months, but the protesters are asking for rents to be regulated and property prices to be curbed.

Saturday, 10 September 2011

Malaysians Taking Advantage of Exchange Rates to Buy up Properties Abroad

Malaysians are taking advantage of favourable exchange rates to buy properties abroad, especially in Britain and the United States where the value of sterling and the dollar has declined over recent months.

Apparently several major estate agents who market international properties have noticed the number of Malaysian buyers has been increasing steadily over the last three years, with figures peaking during the first six months of this year.

It's not just favourable exchange rates which make overseas property so attractive to them, as property prices in Malaysia are soaring, especially in the major cities and towns. This has led those with cash to spare to look towards other countries where prices have dropped significantly over the last few years, and which offer much better value.

London is perennially popular, as are university towns in the US as they offer great rental potential. Properties in Florida, Michigan and Las Vegas are proving to be very popular as they yield higher returns, especially in the case of Florida and Michigan, as both these states have a high student population.

Most Malaysians are buying property for rental purposes, although they are able to stay in the country so long as they have the necessary visa.

Australia is also proving popular, in spite of the strength of the Australian dollar, as the property market is seen as being stable and offering good returns on investments.

The country is proving to be particularly popular with young Malaysian professionals who are looking to diversify their investments and achieve early financial freedom. The majority of properties sold to overseas buyers cost between AU$500,000 and AU$800,000.

Monday, 5 September 2011

More Signs of Possible Stabilisation in US Housing Market

Residential property prices in the US decreased to the year ending in June, but prices are now falling at a much slower pace, leading to hopes that the market might be stabilising. The Standard & Poor/Case Shiller index fell by 4.5% from June 2010, which is slightly less than the 4.6% decline in values predicted by economists.

Values dropped by 0.1% in June which is the same percentage decrease as in May, and is viewed as a sign that the deterioration in the housing market is finally slowing. This is positive news, but it seems as if a full recovery is still several years away due to the number of foreclosures that are still pending, high unemployment rates and strict lending rules.

Economists don't expect house prices to rebound strongly even when the recovery finally picks up pace, especially as a recent report showed that consumer confidence in the US in August was at its lowest level since October 2008 which is mainly thought to be due to concerns over job prospects.

Property prices declined by 5.9% in the second quarter of 2011, compared to the second quarter in 2010, but they increased by 3.6% when compared to the first quarter of 2011 before seasonal adjustment, and by 0.1% after seasonal adjustment.

All of the 20 cities in the index showed a year on year decline to June, with Minneapolis registering the largest drop at 11%. Washington fared the best with just a 1.2% drop in prices.

In a recent speech, Ben Bernanke, Federal Reserve Chairman, expects the economy to improve during the second half of 2011, and said that the central bank would be able to aid the recovery if necessary, and that housing will stabilise.

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