Latest news with #homeSales
Yahoo
a day ago
- Business
- Yahoo
Home sales jump by a quarter month on month in May following April slump
The number of home sales picked up by a quarter month on month in May following a plunge in April as a stamp duty holiday ended, according to HM Revenue and Customs (HMRC) figures. Across the UK, around 81,470 home sales were recorded provisionally in May, which was 25% higher than April but a 12% fall compared with May 2024. Stamp duty discounts became less generous for some homebuyers from April, with people rushing to complete deals before the deadline. Stamp duty applies in England and Northern Ireland. HMRC's report said: 'The increase in transactions for May follows decreased transactions for April, which were likely brought forward into March to take advantage of the higher thresholds.' Tom Bill, head of UK residential research at Knight Frank, said: 'Housing transactions are still clambering back to normal levels after the stamp duty cliff-edge earlier this year.' He added: 'One thing slowing down the process is the vast quantity of stock on the market, which means asking prices need to be kept realistic to trigger activity. 'At this halfway point in the year, the tariff and stamp duty chaos are largely behind us, but tax rise speculation ahead of the Budget could see some buyer hesitation creep back in.' Nick Leeming, chairman of Jackson-Stops, said: 'In the current market, it's essential for sellers to remember there is always demand for a sensibly-priced property.' Nathan Emerson, chief executive officer of property professionals' body Propertymark, said: 'We have seen positivity regarding the number of properties coming to the market.' Richard Donnell, executive director at Zoopla, said data from the website indicates that 'new sales are being agreed at the fastest rate for four years, as more homes for sale means more buyers in the market, with the stamp duty changes in the distant past in the minds of home buyers'. He said: 'The market remains on track for 1.15 million sales in 2025, up 5% on 2024 levels as more households move home.' Amy Reynolds, head of sales at London-based estate agent Antony Roberts, said: 'The spring/summer market is traditionally a time when people prefer to move and this is being reflected in transaction numbers. 'There's plenty of desire to buy in the core price ranges and we're also seeing a rise in first-time buyer activity, even though the stamp duty holiday has ended. 'Many are receiving help from family and being driven by pressures in the rental market, where demand far exceeds supply and rental listings have dropped sharply.' Mark Harris, chief executive of mortgage broker SPF Private Clients, said: 'Transaction numbers have risen again as (Bank of England) base rate reductions encourage activity and enable borrowers to plan ahead with more confidence. 'We expect interest rates to fall further from their current level although the pace and size of cuts may be more gradual than the markets thought only a few weeks ago as a result of higher inflation and the wider economic picture. 'In the meantime, lenders continue to trim their mortgage rates as swap rates fall. Easing of criteria should also enable borrowers take on bigger mortgages in coming months.' Several mortgage lenders have recently announced changes to their affordability criteria, enabling some borrowers to take out bigger loans. This follows clarification from the Financial Conduct Authority (FCA), which also launched a discussion paper this week inviting debate on the future of the mortgage market to help support borrowers. Tony Hall, head of business development at Saffron for Intermediaries, said: 'Looking ahead, there are reasons to remain optimistic. 'With summer demand building and more homes coming to market, conditions are gradually shifting in buyers' favour as we move into the second half of the year.' Kevin Roberts, managing director of L&G's mortgage services business, said: 'Today's figures are encouraging for the industry, especially after the flurry of activity we saw in March to beat the stamp duty changes deadline.' Iain McKenzie, chief executive of the Guild of Property Professionals, said: 'The rush to complete in March created an artificial lull, but we are now seeing the return of genuine, underlying demand.' He continued: 'The recent (Bank of England base rate) cut to 4.25% has provided a welcome boost to buyer affordability. 'However, the most significant catalyst is the relaxation of affordability criteria from lenders. By enabling buyers to borrow more and stress-testing against more realistic rates, lenders have unlocked a new wave of purchasing power, playing a crucial role in driving these transactions forward.' He added: 'Buyers now have more choice than they've had for years, which is helping to keep price growth sustainable.'
The Independent
a day ago
- Business
- The Independent
Home sales jump by a quarter month on month in May following April slump
The number of home sales picked up by a quarter month on month in May following a plunge in April as a stamp duty holiday ended, according to HM Revenue and Customs (HMRC) figures. Across the UK, around 81,470 home sales were recorded provisionally in May, which was 25% higher than April but a 12% fall compared with May 2024. Stamp duty discounts became less generous for some homebuyers from April, with people rushing to complete deals before the deadline. Stamp duty applies in England and Northern Ireland. HMRC's report said: 'The increase in transactions for May follows decreased transactions for April, which were likely brought forward into March to take advantage of the higher thresholds.' Tom Bill, head of UK residential research at Knight Frank, said: 'Housing transactions are still clambering back to normal levels after the stamp duty cliff-edge earlier this year.' He added: 'One thing slowing down the process is the vast quantity of stock on the market, which means asking prices need to be kept realistic to trigger activity. 'At this halfway point in the year, the tariff and stamp duty chaos are largely behind us, but tax rise speculation ahead of the Budget could see some buyer hesitation creep back in.' Nick Leeming, chairman of Jackson-Stops, said: 'In the current market, it's essential for sellers to remember there is always demand for a sensibly-priced property.' Nathan Emerson, chief executive officer of property professionals' body Propertymark, said: 'We have seen positivity regarding the number of properties coming to the market.' Richard Donnell, executive director at Zoopla, said data from the website indicates that 'new sales are being agreed at the fastest rate for four years, as more homes for sale means more buyers in the market, with the stamp duty changes in the distant past in the minds of home buyers'. He said: 'The market remains on track for 1.15 million sales in 2025, up 5% on 2024 levels as more households move home.' Amy Reynolds, head of sales at London-based estate agent Antony Roberts, said: 'The spring/summer market is traditionally a time when people prefer to move and this is being reflected in transaction numbers. 'There's plenty of desire to buy in the core price ranges and we're also seeing a rise in first-time buyer activity, even though the stamp duty holiday has ended. 'Many are receiving help from family and being driven by pressures in the rental market, where demand far exceeds supply and rental listings have dropped sharply.' Mark Harris, chief executive of mortgage broker SPF Private Clients, said: 'Transaction numbers have risen again as (Bank of England) base rate reductions encourage activity and enable borrowers to plan ahead with more confidence. 'We expect interest rates to fall further from their current level although the pace and size of cuts may be more gradual than the markets thought only a few weeks ago as a result of higher inflation and the wider economic picture. 'In the meantime, lenders continue to trim their mortgage rates as swap rates fall. Easing of criteria should also enable borrowers take on bigger mortgages in coming months.' Several mortgage lenders have recently announced changes to their affordability criteria, enabling some borrowers to take out bigger loans. This follows clarification from the Financial Conduct Authority (FCA), which also launched a discussion paper this week inviting debate on the future of the mortgage market to help support borrowers. Tony Hall, head of business development at Saffron for Intermediaries, said: 'Looking ahead, there are reasons to remain optimistic. 'With summer demand building and more homes coming to market, conditions are gradually shifting in buyers' favour as we move into the second half of the year.' Kevin Roberts, managing director of L&G's mortgage services business, said: 'Today's figures are encouraging for the industry, especially after the flurry of activity we saw in March to beat the stamp duty changes deadline.'
Reuters
2 days ago
- Business
- Reuters
US pending home sales rise more than expected in May
WASHINGTON, June 26 (Reuters) - Contracts to buy previously owned U.S. homes increased more than expected in May, but higher mortgage rates remain a constraint for buyers. The National Association of Realtors said on Thursday its Pending Home Sales Index, based on signed contracts, increased 1.8% to 72.6 last month. Sales rose in all four regions. Economists polled by Reuters had forecast contracts, which become sales after a month or two, would edge up 0.1%. Pending home sales advanced 1.1% from a year earlier. "Consistent job gains and rising wages are modestly helping the housing market, said Lawrence Yun, the NAR's chief economist. "However, mortgage rate fluctuations are the primary driver of homebuying decisions and impact housing affordability more than wage gains."
Yahoo
5 days ago
- Business
- Yahoo
US existing home sales rise in May; mortgage rates still a constraint
WASHINGTON (Reuters) -U.S. existing home sales unexpectedly increased in May, but the trend remained weak amid high mortgage rates. Home sales climbed 0.8% last month to a seasonally adjusted annual rate of 4.03 million units, the National Association of Realtors said on Monday. Economists polled by Reuters had forecast home resales falling to a rate of 3.95 million units. The sales pace was the slowest for the month of May since 2009. Sales fell 0.7% on a year-over-year basis in May. "The relatively subdued sales are largely due to persistently high mortgage rates," said Lawrence Yun, the NAR's chief economist. "If mortgage rates decrease in the second half of this year, expect home sales across the country to increase." The average rate on the popular 30-year fixed-rate mortgage has hovered just under 7% this year. President Donald Trump's aggressive tariffs on imported goods have heightened uncertainty over the economy, which the Federal Reserve has responded to by pausing its interest rate cutting cycle. The U.S. central bank last week kept its benchmark overnight interest rate in the 4.25%-4.50% range, where it has been since December. Fed Chair Jerome Powell told reporters he expected "meaningful" inflation ahead due to the import duties. A National Association of Home Builders survey on Tuesday showed sentiment among single-family homebuilders plummeted to a 2-1/2-year low in June. The NAHB reported an increase in the share of builders cutting prices to lure buyers, and forecast a decline in single-family starts this year. Residential investment, which includes homebuilding and home sales, contracted slightly in the first quarter after rebounding in 2024 following steep declines in the prior two years caused by a surge in mortgage rates. The inventory of existing homes increased 6.2% to 1.54 million units in May. Supply surged 20.3% from a year ago. The median existing home price rose 1.3% from a year earlier to $422,800 in May, an all-time high for the month. At May's sales pace, it would take 4.6 months to exhaust the current inventory of existing homes, up from 3.8 months a year ago. A four-to-seven-month supply is viewed as a healthy balance between supply and demand. Properties typically stayed on the market for 27 days last month compared to 24 days a year ago. First-time buyers accounted for 30% of sales, down from 31% a year ago. Economists and realtors say a 40% share is needed for a robust housing market. All-cash sales constituted 27% of transactions, down from 28% a year ago. Distressed sales, including foreclosures, made up 3% of transactions, up from 2% a year ago.
Yahoo
5 days ago
- Business
- Yahoo
Home sales rose slightly in May, but high mortgage rates are still hurting the market
US existing home sales improved slightly in May, a small sign of life for a housing market that's been rocked by high mortgage rates and growing economic uncertainty. Sales of previously owned homes rose 0.8% from a month earlier, to a seasonally adjusted annual rate of 4.03 million, the National Association of Realtors said Monday. Economists had expected a 1.3% drop to a rate of 3.95 million homes. Compared to a year earlier, sales are down 0.7%. Existing home sales are counted when a sale closes, meaning most homes went under contract a few months earlier, at the beginning of the traditional spring homebuying season. So far, signs point to a slow spring. Contract signings dropped sharply in April, and homes are spending more time on the market than they were a year ago. 'The relatively subdued sales are largely due to persistently high mortgage rates,' NAR chief economist Lawrence Yun said in a statement. 'Lower interest rates will attract more buyers and sellers to the housing market." Mortgage rates have held steady in recent months at around 6.8% and home prices remain near all-time highs, leaving many prospective buyers struggling with affordability. The median existing home sold for $422,800 in May, according to NAR data, a record high for the month. Prices have risen 1.3% from a year earlier. If they can stomach high prices, buyers do have more homes to choose from this spring. As of May, housing inventory stood at 1.54 million, up 6.2% from a month earlier and 20% from a year ago. Read more: 2025 housing market: Is it a good time to buy a house? By subscribing, you are agreeing to Yahoo's Terms and Privacy Policy Sales were strongest in the more competitive and supply-constrained Northeast and Midwest regions. In the Northeast, existing home sales were up 4.2% from April and 4.2% from a year earlier. The Midwest reported a month-over-month gain of 2.1% and 1% growth from 2024. In the South, existing home sales rose 1.7% from a month earlier, while they declined 5.4% in the West. Claire Boston is a Senior Reporter for Yahoo Finance covering housing, mortgages, and home insurance. Sign up for the Mind Your Money newsletter Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
