Housing Demand Declining for First Time in 4 Years

first_img Buyers First-Time Homebuyers Genworth Genworth Mortgage Insurance Corp. Home Prices Homebuyers homes HOUSING Inventory mortgage Purchase Loans Supply 2018-05-24 Radhika Ojha Housing Demand Declining for First Time in 4 Years in Daily Dose, Featured, News, Origination Homes sold to first-time homebuyers declined year-over-year for the first time since 2014 according to the latest edition of Genworth Mortgage Insurance’s First-time Homebuyer Market Report released on Thursday. The report, which aggregates all publicly-available government data and proprietary mortgage data into one dataset for its results, found that in Q1 of 2018, first-time homebuyers purchased 411,000 single-family homes a decline of 2 percent from the first quarter of 2017. This set of buyers also accounted for 37 percent of single-family homes sold and 57 percent of purchase mortgages financed.“This quarter’s decline in first-time homebuyer sales reflects a slowdown in cyclical momentum as the first-time homebuyer market approached its historical norms,” said Tian Liu, Chief Economist at Genworth Mortgage Insurance. “It also reflects a shortage of available homes priced at or below the median first-time homebuyer market price of $250,000.” Pointing to the continued pressure from inventory shortage, Liu said that while homebuyer demand was easing slightly for the first time in four years, “supply pressures will continue to drive price appreciation and freeze out a large percentage of the 2.7 million first-time homebuyers who are still missing from the market.”The report also indicated an increase in home sales without financing or all-cash transactions, even as purchase loans made by investors increased by 3 percent from last year. These numbers indicated a rise in speculative demand and otherwise a more competitive environment among potential homebuyers.The quarter’s growth of all-cash transactions and purchase loans made by investors also pointed to a market that was overheating according to Liu. “It is becoming increasingly common to see multiple offers submitted on a property, which results in purchase prices surpassing listing prices, as well as inflated home prices, making cash offers more coveted,” he said. “Because first-time homebuyers prefer using debt over cash when purchasing a home, this quarter’s surge in cash purchases is a competitive disadvantage to them and helps explain their pull-back.”Shortage in housing supply, as well as rising mortgage rates, have also contributed to lower home sales, the report found. Yet, contrary to most forecasts, the report said, “we believe that strong first-time homebuyer demand and an insufficient supply increase will keep home prices growing at their current pace.”Looking at future supply trends, the report said that despite the current insufficient response in easing inventory pressure at the lower end of the market, housing supply will continue to expand to meet the strong first-time homebuyer demand. “In addition to new construction, we will likely see the conversion of rental units back to owner-occupied properties, lower vacancy rates, and increased remodelling activities,” the report said.To read the full report, click here.center_img May 24, 2018 599 Views Sharelast_img read more

Go back to the enewsletter Hilton Hotels Reso

first_imgGo back to the e-newsletter >Hilton Hotels & Resorts, on 7 October, opened its newest hotel in London, the Hilton London Bankside. Located just moments away from Shakespeare’s famous Globe Theatre, the design-led hotel is the latest property to join the Hilton brand portfolio of more than 70 hotels across the UK & Ireland.Hilton London Bankside is home to 292 guest rooms including 25 bespoke suites which offer views of the city skyline. The hotel also includes one penthouse apartment, which boasts its own private roof terrace, a 100m2 entertainment area and views across London. In addition, the hotel brings a new neighbourhood eatery, OXBO Bankside to the area, alongside The Distillery, a cool and casual bar.Simon Vincent, executive vice president and president, Europe, Middle East and Africa, Hilton Worldwide, said, “Bankside is one of London’s most vibrant areas, with an eclectic mix of culture, food, architecture and attractions. With the city attracting around 30 million global visitors every year, we are delighted to be expanding our footprint in the city and look forward to putting Hilton London Bankside on the map as a key destination for travellers and Londoners alike.”Rob Palleschi, global head, full service brands, Hilton Worldwide, said, “Located in one of Britain’s oldest settlements, Hilton London Bankside is a unique property, beautifully designed to represent the city’s historical past and urban environment. Known for its rich history and dynamic culture, Bankside is a key market area for the region and this opening elevates Hilton’s overall presence in this important destination”.James Clarke, general manager, Hilton London Bankside said, ”I am thrilled to be playing a pivotal role in the opening of Hilton London Bankside. We are looking forward to welcoming our first guests to the hotel and hosting our first conference in the state of the art ballroom. Working closely in collaboration with my team, we will ensure we become a destination within Bankside for our local community and our international guests”.The hotel contains eight flexible meeting rooms and the Bankside Ballroom, an impressive pillar free room accessed by sweeping grand staircases. Complete with chandeliers, a six metre high ceiling and state of the art technology, the Bankside Ballroom is an exciting new venue for the area, holding up to 700 guests.Executive rooms also have access to the Executive Lounge which serves breakfast, afternoon tea and evening menus of hot and cold canapés with a range of selected beverages, in a stylish, refined setting.Hilton London Bankside participates in Hilton HHonors®.Go back to the e-newsletter >last_img read more