Archive for June, 2014

The private housing market in the first quarter moved up 55% from a year ago

June 26, 2014

Maybe it did not come out of the tunnel, but the private housing market improves. In the first quarter of 2014 it moved to 55% from a year ago. Specifically, the property market moved to March 10386.5 million.

According to the Ministry of Development, the amount that moves the private housing market started 2014 in positive after scoring three consecutive years of decline. The data must be analyzed carefully because the first quarter of 2013 was particularly affected by the end of the tax relief on purchase of residence and the increase in VAT.

The 10386.5 million euros correspond to the 77,271 private housing transactions that were made between January and March (49% more than the year before). Specifically, free housing resale mobilized 8648.3 million (up 62%), while the amount in the new work was much lower, with 7682.3 million (+ 27%).

The region where the largest amount recorded in private housing transactions in the first three months of the year was Madrid, with 2,106.6 million euros. Behind stood Catalonia (1,890.9 million), Andalucía (1851.6 million) and Valencia (1,194 million).

Below are the Basque Country (485.7), Canary Islands (469 900 000), Baleares (443.7), Castilla y León (346.3), Galicia (313.6), Castilla-La Mancha (278) , Murcia (248.2) and Aragon (220.2). Meanwhile, the regions in which the private housing sector were moved less money Asturias (125.5 million), Cantabria (110.7), Extremadura (107.3), Navarra (98.2), La Rioja (65 , 4) and Ceuta and Melilla (30 between the two).

Live rent is more expensive in Madrid in Los Angeles or Miami

June 23, 2014

While in Los Angeles will pay rent 47% of salary in Madrid surpasses and reaches 52.35%.

The community where the rent is lower is Extremadura, where they are located around 470 euros per month, which accounts for 28.37% of the average wage.

Although the crisis has meant that fewer homes were bought, Spain is still a country where people still poses buy a home. Therefore, the rental figures are not as high as in other countries such as the United States, where between 2007 and 2013 were added to the housing market about 6.2 million tenants face a rather poor figure Owners: only 208,000.

In Spain between 2001 and 2011 the percentage of home ownership decreased to reach 78.9%, while the number of rental housing has increased. In 2011, the country had more than 2.4 million rental property, a figure that is 51.1% higher than a decade ago. However, despite increasing the number of houses for rent, prices have continued to rise to reach higher than some of the more expensive cities around the world levels.

Head to the latest data from the rental market in the U.S., where housing in cities like Miami or Los Angeles are an expense of up to 47% of income, we find figures of Spain. In general, almost all regions are around the threshold of profitability, but you get over it, do it with a vengeance.

The autonomous community of Spain more expensive to live in rent is Madrid, where rent consumes 55.25% of monthly salary. According to the profitability index, households are at a reasonable price while it is less than 30% of the income of a home. In the United States, at least 90 cities have a rental cost greater than this percentage.

Behind Madrid are Basque Country and the Balearic Islands, where to pay the rent is required to disburse the 46.73% and 42.48% of gross salary. Already below 40 include, but are still quite a high percentage, Catalunya (39.57%) and the Canary Islands (37.19%). In this context, in Spain there are only three regions that do not reach this percentage: La Rioja (29.20%), Castilla-La Mancha (29.03%) and Extremadura (28.47%). The rest are on this 30%.

The price is not that different

Although the rents are higher relative value in the U.S., average wages are also much higher. In Madrid, for example, the average gross annual salary in 2011 was located at 25845.20 euros, compared to $ 48,000 (34,779 euros) in Miami, the second most expensive city in the United States.

Although relative price difference is not so great: if a citizen of Miami lives in a rental house and I assumed 47% of his salary, we are talking about a car about $ 1,880, ie about 1,361 euros . While in Madrid, the average salary is 2,153.7 euros per month, which has to deal with a rent of about 1,190 euros.

Alongside the Basque Country, Catalonia, Baleares and Navarra, the property price floor of Madrid is the highest: 10.38 euros per square meter, a price that is 33% higher more expensive than in the rest of Spain.

USA rental, Spain Cart

In the United States the number of tenants is much higher than that of Spain. In the North American country in 2013 had joined the real estate market 6.2 million tenants, representing 1.9% of the U.S. population. The difference in the number of homeowners who joined the market this year is abysmal: only 208,000 people.

However, the Spanish property map is very different, although the trend is to hire increasingly detrimental cart. Between 2001 and 2011, the homeownership rate fell to levels of the eighties, while the percentage has been rising rents.

In 2011, 13.5% of the more than 18 million homes in Spain were hired which is almost increased by over 51% when compared with figures from ten years earlier.

In this context, the report by the Insurance Car in February based on the risk-to rent extracted the trend to increasingly live in lease and the gradual fall in rental prices do not lead increased payment guarantees. In this regard, within the group of Spanish renters, 30% are at risk of not paying rent to the owner.

Down in February the price of housing in the U.S.

June 20, 2014

The housing prices increased in February in the United States with respect to the steady pace of a year ago, indicating that the limited supply of available homes has gone up prices despite a drop in sales.

Analytic real estate firm CoreLogic said Tuesday that existing home prices rose 12.2% in February compared to a year ago. In January, up 12%.

On a monthly basis, prices advanced 0.8 February% from January. However, the list of CoreLogic month is not adjusted for seasonal factors such as winter weather, which may adversely affect sales.

Snowstorms, higher prices and higher mortgage rates sales fell in February to its lowest level in 19 months.

Urged decreased supply prices despite a decline in sales, which fell 0.4% in February to a seasonally adjusted figure for the annual figure of 4.6 million compared to January, according to the National Association of Realtors. The pace of sales could end up with homes offered at 5.2 months, said the association; the inventory figure is less than six months out sound economies.

The states with the highest price increases in the last year were California, 19.8%; Nevada, 18.5%, and Georgia, 14.2%. No state decreased its prices.

Prices in four states reached their highest level in February: Colorado, Nebraska, North Dakota and Texas. Other states are 22 to 10 points from their previous peaks, CoreLogic said.

Nationally, the average house price is still lower by 16.9% through April 2006, at the height of the bubble brick.

And home construction fell for the third consecutive month in February. However, there are hopeful signs: Builders requested more building permits in the past four months.

Venezuelan businessmen and Colombian second home seekers invade Florida

June 18, 2014

In the early months of the properties available in South Florida fell 70% compared to 2008. Shame of Latin Americans, especially Venezuelans, Brazilians, Colombians and Argentines, who buy 70% of the available properties. Your profile is varied, from businessmen to wealthy clients Caracas fleeing mass of Sao Paulo or Bogotá.

Little has changed in Latin America that made Miami his favorite neighborhood in the late 90. The average buyer is 45 years old, and 66% of them acquired the property that is your second home, and in 81% of cases, used.

According to Lonja Realtors of Bogotá, the average income of the buyer is U.S. $ 87,000 per year and that amount funded the $ 144,000 the average home, but paying cash is still preferred for almost 80%.

But on this there are many differences as deals in the area, recalled Liliana Gomez, director of sales for the international department of ISG World. This property controls, along with two other competitors, 70% of South Florida, with housing options ranging from U.S. $ 180,000 for the simplest to a base of $ 3.5 million for super luxury, from the financial area of ​​Miami areas located east of Palm Beach.

“80% of our inventory is sold to South America. The participation of Venezuelan and Brazilian 35% each. The remaining 30% is divided equally between Colombia and Argentina, but Colombians are slow to return to the market, “said Gomez.

While the Venezuelan client usually entrepreneur looking to invest in Brazil’s case is users “swimming in money” and want second homes, especially in Orlando. Colombians are “sophisticated people” who already own property in the U.S., and counterpoint, put the Argentines from different social branches, looking to take advantage of bargains in the market east of Palm Beach.

Jackye Ferreira Estate by Homes & Condos Florida agent said from the U.S. sales have increased 30% from 2010, the bursting of the housing bubble in 2008, he left behind a large surplus of housing that forced it to lower prices to be competitive.

“The costs are reasonable right now, nobody is asking for something out of reality. We talked and apartments costing an average of $ 300,000 in the case of Colombia have become attractive by rising housing in Bogotá. The difference is not so much a house in Miami, “said the expert.

This argument partly explains the buyer to return the Colombian South Florida. As Gomez recalled in 2005 this segment accounted for over 50% of its total sales in the region, and now rejoins re slowly to the comparison that is in the local market.

The relevance of the new housing boom is the Latin American simultaneity when buying, because even seen signs of interest, much more modest, Ecuador and Peru.

Lonja de Bogotá Estate Association said the real estate sector as the fastest growing segment in Florida, which has a weight of 20% of the total economy. The facilities for travel to Latin American and the similarity in price makes not only whether businessmen interested in investing.

“For a long time has been the image that is difficult for the foreigner to buy property here, and that has been proven false in recent years, has been a major change in the trend,” Ferreira said.

What properties are you looking for? For Colombia, houses of two or three rooms for second home event, and if it comes to investing, small apartments with high rents.

Miami has become a safe haven currency. For Venezuelans, who lead the market, is the conversion of their devalued bolivars to the dollar strengthened again.

A more attractive financing in South America

The option of financing is becoming increasingly attractive, as the annual interest rate is 5%, a rare find in the region, as you remember from ISG World.

In the latest report of the Association of Realtors Miami, indicated that most U.S. lenders require between 30% and 50% of the value of housing loans, which reduces paperwork and makes it more attractive mortgage rates.

U.S. mortgage applications up; rates to low: MBA

June 14, 2014

The mortgage applications in the U.S. rose last week due to a decline in interest rates, according to the Mortgage Bankers Association (MBA, for its acronym in English).

The group said its seasonally adjusted index of mortgage application activity, which includes both refinancing and demand for home purchases, rose 0.9 percent in the week ended May 16.

The seasonally adjusted index of refinancing applications rose MBA 3.8 percent, while the gauge of loan requests for home purchases, an important indicator of home sales, fell 2.8 percent.

Mortgage rates 30-year fixed averaged 4.33 percent this week, the lowest rate since November 2013 and 6 basis points from 4.39 percent the previous week.

The survey covers over 75 percent of the retail residential mortgage applications in the U.S., according to the MBA.