U.K. Mortgage Approvals Are Falling, Home Prices Could Be Next
U.K. mortgage approvals dropped to 35,612 in December, falling more than 20% from the 46,186 approvals the nation saw in November, according to data from the Bank of England. When excluding the Covid-19 pandemic period, during which the entire real estate market was shuttered, the precipitous tumble marks the lowest point for mortgage approvals since January 2009, when the world was grappling with a global financial crisis. “The extremely high cost of mortgage borrowing has caused more buyers to withdraw from the market,” said Andrew Wishart, senior property economist at Capital Economics. And with buyers leaving the market, industry professionals believe prices may soon follow. City A.M.
Experts Predict Flat Sales, Small Price Growth for the Greater Vancouver Area This Year
What does the future hold for the Greater Vancouver home market? According to the professionals, flattening sales and slight price growth. In its outlook for 2023, the Real Estate Board of Greater Vancouver is predicting 28,500 home sales for the region, a 2.6% decrease from the previous year. And while prices for metro Vancouver have declined of late, the board expects a moderate increase, 1.4%, in home value to C$1.2 million in the coming year as population growth in the region remains steady. However, there remains a pretty significant caveat to all of these forecasts—the potential for an economic recession and even higher mortgage rates. BNN Bloomberg
40% of Young Australians Consider Buying a Home With Friends
Young Australians are getting creative in their pursuit for a first home. According to research from the National Australia Bank, 40% of young Australians have considered purchasing a property with a non-romantic acquaintance. The increasing difficulty for would-be first-time home buyers to find a property, given escalating interest rates and increased competition, has led young house seekers to expand to a pool of people with whom to share a mortgage. realestate.com.au
Chicago-Area New-Home Sales Hit Lowest Level Since 2010
New-home sales in the 10-county Chicago metropolitan area totaled just 677 transactions for all of the fourth quarter of last year, according to data from home-builder consultancy Tracy Cross & Associates. That was a quarterly low that has not been seen since the fourth quarter of 2010, amid the grips of the Great Recession, when an identical number of new homes were sold. Contributing to the sluggish new-home sales is a lack of building—Illinois ranked 48th among states in new homes per capita in 2022—due in part to slow population growth. The Real Deal