Interest Rate Cut Boosts Australian Property Sales

Australia recently saw its first interest rate cut in two and a half years, and this has had a positive effect on the sales of new homes which have increased by 6.8% from October to November. Sales of detached properties increased by 9.8% which was mainly due to more properties being sold in New South Wales and Victoria.

However the picture isn't quite so rosy for multiunit sales which fell by 17%. Experts have played down the increase saying it is only to be expected as two months earlier sales of detached homes fell to an 11 year low which was partly due to speculation about a rate cut, and although this latest news is welcome sales volumes are currently at least 20% below levels required for a healthy market.

They point out that a sustained government stimulus is needed to bring about a strong recovery within the homebuilding market. In November sales of detached homes increased in four out of the five main and states and were up by 22.8% in New South Wales, by 11.6% in Victoria, by 5.7% in Western Australia and by 4.7% in Queensland.

In South Australia sales fell by 11.3%. It is however a great time for anyone wishing to build a new home as the building market is very competitive with a good availability of skilled trades combined with lower interest rates creating favourable conditions. Some economists are even predicting further interest rate falls as early as next month in an effort to boost retail sales and lift consumer sentiment.

Property Prices of Miami Condos Increase for the Fourth Consecutive Month

Figures from the Miami Association of Realtors show prices of condos have increased for the fourth consecutive month, and overall residential property sales look set to have ended the year on a high.

Sales of previously owned single family homes rose by 11% in November in the Miami metropolitan area when compared to the same month in 2010, while sales of previously owned condominiums increased by 2%.

The median price of a condominium now stands at $125,000, an increase of 18% when compared to the same time a year ago. The median price of a single family home has remained steady at $171,300.

In Miami Dade County the average price for a single family home rose by 8.2% to $324,846 in November 2011 compared to $300,369 in November 2010. However the increase for the average sale price of condominiums is even more impressive having risen by 21.5% to $226,151 in November 2011 compared to $193,486 in November 2010.

The chairman of the board of Miami Association of Realtors, Jack Levine feels these figures reflect the strengthening property market in spite of continued restrictions on mortgages.

Sales to overseas buyers still account for a considerable percentage of all transactions, as do cash sales. Some 79% of condominiums bought by overseas buyers were purchased with cash as were 41% of single family homes. As the excess housing inventory is being absorbed the effect of short sales and foreclosures on sales prices are decreasing as the market gradually becomes more balanced and healthy. In Miami Dade County the inventory of residential listings has decreased by 40% during the last 12 months from 24,278 to just 14,461 active listings.

Russian Buyers Increasing in Overseas Property

A survey carried out across several major Russian overseas property exhibitions has found that almost 2 thirds of Russian investors are preparing to complete purchases in the next 6 months.

The results of 3 surveys carried out at major aiGroup property investment shows found that 71% of Russian investors are planning on completing their purchases in the next six months.

Kim Waddoup, chief executive of aiGroup also said that the exhibitors at all three shows had reported "stronger than ever interest in their properties".

Russians, once a massive force in overseas property had dropped off during the financial crisis, but are now coming back with a vengeance. The rush on overseas property is part of a wider trend of capital flight from Russia as those in the emerging market seek out safe zones for their cash.

Central Bank chairman Sergei Ignatyev has estimated $49.3 billion has left the country in the first nine months of the year, already outstripping 2010’s figure of £35.3 billion. $13 billion of capital left Russia in September alone…70% of the third-quarter total.

As far as buying overseas property goes, the Russians favourites have changed a little since the boom time. Russians were known for favouring destinations within a short-haul flight, and with a similar culture/background to their own, with Bulgaria and Ukraine being very popular, although Spain has long been the favourite.

According to a survey of 499 investors conducted by International Residence at the Moscow International Investment Show in March, Spain is still the favourite, followed by Bulgaria and Turkey is the newcomer in third place.

US Contract Cancellations Increase, but Sales Figures Are up

Sales figures for residential property in the US are up, in spite of contract cancellations increasing substantially. Latest data from the National Association of Realtors shows sales of single family homes, townhomes, condominiums and co-op's increased by 1.4% in October to 4.97 million, compared to 4.9 billion in September. Year-on-year sales have increased by 3.5% compared to 4.38 million homes sold in the year ending October 2010.

These figures would be even better had sales not being negatively affected by this increase in contract cancellations. These are due to various factors including failed mortgage applications, loss of employment and bad home inspections. Cancellations rose by an incredible 33% in October compared to 18% in September.

Although the sales figures are slowly rising, Lawrence Yun, chief economist at the NAR thinks the market is still operating at a lower level than desired in spite of improving factors which include rising rents, increased affordability and the creation of new jobs, and feels many people who want to buy new homes are having their plans thwarted.

At the moment there are 3.33 million homes on the market, and stock levels are falling steadily with October showing a 2.2% fall leaving an eight month supply. The market reached its peak in July 2008 when they were 4.58 million homes on the market.

Some areas are also seeing a shortage of foreclosures, especially in lower priced homes where multiple bidding on desirable property is becoming more commonplace. This has prompted realtors to ask for foreclosures to come on the market at a faster rate because they have buyers ready to purchase, and giving credit to investors would help absorb inventory at a faster rate.

Find out more about Foreclosure property in Florida

Britons Account for 29% of International Sales in Turkey

The latest Turkish Land Registry Office data shows Britons now account for an incredible 29% of foreigners purchasing property in the country, with the Germans accounting for 23% and Greeks accounting for 9% of international buyers. According to experts most of these buyers will use their own national currency in which to invest in property, and apparently this isn't always the wisest choice.

Certain areas of the country attract certain groups of buyers, as property around Alanya and Antalya is a popular with Northern Europeans, and as such is often priced in euros, while other areas which tend to be dominated by the British such as Altinkum are often priced in sterling.

This is down to agents pricing property in a currency which is more likely to hold its value on the global stage rather than local currency. From the overseas buyer’s point of view, it is easier to purchase property priced in their local currency rather than having to worry about converting it into Turkish lira, but this may not be the best way forward.

Overseas buyers can often just as easily make an offer in Turkish lira, and may discover that using a currency exchange specialist could ultimately cost them less than paying in their own local currency.

Currency exchanges often have extremely competitive rates for people transferring large amounts of currency, beating the banks by a considerable margin, so while it's possible to bargain down the price of property it is worth bearing in mind that you may also be able to negotiate paying in a more favourable currency.

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Spanish Property Prices Are Still Falling, but the Costas Are Perennially Popular

Property prices in Spain are still declining, but the Costas have always been popular with international buyers and prices in these regions are seeing lower price falls.

According to Tinsa, who is one of Spain's leading appraisal companies, prices have fallen most in regional capitals, and have declined by an average of 8.1% to the year ending in October.

Prices in metropolitan areas have declined by 7.5%. However prices on the Mediterranean coast have fallen by 6.9%, while the Canary Islands and the Balearic Islands have seen price declines of just 3.4%. Property prices have fallen by 30% on the coast and by 20.5% in the islands.

Data from the Department of Housing paints a slightly different picture as it shows property prices fell by an average of 5.6% to the year ending in the third quarter.

This data shows prices having fallen by 9.1% in Costa Dorada, by 8.5% in Madrid and by 8.3% in Murcia. Prices increased in Tenerife and Extremadura by 1.7% and 1% respectively, but data from the Department of Housing is usually regarded as being pretty unreliable.

However the declining prices are attracting overseas buyers, with Russians proving to be the most ardent purchasers followed by the Scandinavians, Dutch and Belgian buyers. One of the most popular regions is Murcia due to the new Paramount theme park, the new international airport at Corvera and the prospect of the AVE train network extension.

Work on the new theme park is due to begin in March next year, and the new international airport will see a number of scheduled services next spring. Work on the train network extension is also expected to begin next spring as the European commission has deemed the link to be a priority, and as such it will receive financial backing.

Moscow Rated As Top City for Property Investment

London has lost its number one place as being the most attractive European city for property investment, according to the latest annual European Regional Economic Growth Index report from LaSalle investment. Apparently Moscow now has greater potential.

Even so the report believes that medium-term demand for European property will remain high in major cities that have high levels of wealth such as London, Munich and Paris, but London has fallen to second place due to poor GDP growth and employment growth, while global financial concerns have also impacted the city.

In spite of this London still has a far higher wealth and better business environment that Moscow and is generally a dynamic and mature market. Next year's Olympic Games is predicted to further boost its popularity, creating more jobs and continuing the regeneration in the area.

All in all the outlook for Northern European countries is still considered to be strong, and emerging Eastern European markets are also predicted to do relatively well over the next few years. The picture isn't so rosy for southern European countries that are already deeply in debt.

Moscow rose from 10th place to second place in last year's annual report, before rising to the top spot this year, but LaSalle still thinks many foreign businesses will be deterred from investing due to the negative business environment.

Munich was again rated number three just ahead of Paris due to its good business environment scores and higher growth levels. Germany is also notable for having the most number of cities in the top 20 which is due to its economic strength.