US Housing Market Update Do not conflate real assets with inflation hedges We believe the link between real estate cashflows and inflation to be overplayed, a view that is backed up by the evidence of the last 44 years. But there are exceptions. One of which is low vacancy... 10th February 2022 · 4 mins read
US Housing Market Update Ballooning mortgage size not a risk to the market The average home purchase mortgage size has ballooned over the past couple of years, but a concurrent rise in down payments will protect lenders from all but the most severe of house price shocks... 10th February 2022 · 3 mins read
UK Housing Market Data Response RICS Residential Market Survey (Jan.) The largest rise in new buyer enquiries for nine months and a reversal of the December dip in sales volumes confirmed that the housing market remained extremely tight at the start of the year. With no... 10th February 2022 · 2 mins read
UK Commercial Property Valuation Monitor Valuations worsen as property yields continue to fall Property valuations, compared to bonds and equities, deteriorated for a fourth consecutive quarter in Q4. The spread between the asset classes narrowed as the magnitude of the fall in all-property... 9th February 2022 · 6 mins read
US Housing Market Chart Pack House price and rental growth to ease in 2022 House prices and rents both boomed in 2021, but are set for a quieter 2022. Mortgage rates are now rising and we expect the 30-year rate will end the year at around 4%. Combined with the rise in house... 8th February 2022 · 9 mins read
UK Housing Market Data Response Halifax House Prices (Jan.) The smaller gain in house prices in January reported by Halifax is unlikely to mark the start of a sharp deceleration in house price growth. With the supply of homes for sale still very limited and... 7th February 2022 · 2 mins read
UK Housing Market Outlook House price gains have further to run It is likely to take longer than most expect for rising interest rates to cool the housing market. Mortgage rates have only just begun to rise from the record low reached in November, and limited... 4th February 2022 · 22 mins read
UK Commercial Property Data Response IHS Markit/CIPS Construction PMI (Jan.) In contrast to the decline at the end of last year, the construction PMI rose to its highest level in six months in January. There were also encouraging signs that supply and cost issues have started... 4th February 2022 · 2 mins read
Europe Commercial Property Update Supply to limit Dublin office rental revival The recovery in Dublin offices has lagged the broader economic upturn. While demand is expected to improve in 2022, with a full supply pipeline, it is likely that vacancy will stay at relatively high... 4th February 2022 · 3 mins read
US Commercial Property Update Falling oil prices to weigh on Houston office demand We think that elevated oil prices will help office-based employment in Houston to recover further in the coming months, but the shift to remote working will limit the associated boost to office demand... 3rd February 2022 · 3 mins read
US Housing Household formation stalls as costs mount After seeing strong gains over most of 2021, household formation stalled in the final quarter. A lack of homes for sale and rent, and the soaring cost of both tenures, is constraining household... 3rd February 2022 · 3 mins read
Europe Commercial Property Update Good times over for industrial rents in major ports While the recent improvement in world trade is encouraging for industrial demand in the major port markets, we don’t expect an acceleration in rental growth this year. Supply bottlenecks will still... 3rd February 2022 · 3 mins read
UK Commercial Property Data Response RICS Construction Market Survey (Q4) The latest RICS survey indicated that activity in Q4 and the outlook for the short term were broadly unchanged. The survey also suggested that labour and material shortages will continue to hurt... 3rd February 2022 · 2 mins read
US Commercial Property Data Response US Metro Employment (Dec.) Progress in the labour market has been slow, with employment having recovered to pre-COVID levels in just four of the 30 metros. While Las Vegas and Orlando have seen decent job growth in recent... 2nd February 2022 · 2 mins read
US Housing Market Data Response Mortgage Applications (Jan.) Mortgage rates rose to a two-year high of 3.78% in the last week of January. As yet that has done little to cool home purchase demand, with applications increasing to a one-year high. But a lot of... 2nd February 2022 · 2 mins read
UK Commercial Property Data Response Lending to commercial property (Dec.) A marked jump in lending to standing property resulted in total net lending reaching its highest level in just over 18 months in December. Although this is encouraging, several challenges remain... 1st February 2022 · 2 mins read
