A number of property reports released in the last week, including MyHome’s own Property Barometer, have suggested that prices are now rising in a number of areas in Dublin.
That much will have been widely reported, of course, but there were other positives to take from the information.
It is too soon to call the bottom of the market but there is a definite sign of some stabilisation, with the trend in Dublin starting to curve upward and stabilisation now very much in evidence in Cork also.
Of course, the rest of the country still has a bit of a way to go before things turn around but then it was always likely that any recovery would take place in the main cities anyway.
What appears to be emerging is a split market and not just in terms of geography.
While prices on the whole have been falling around the country, here at MyHome.ie we’ve noticed a growing trend in stabilisation of prices for 4 bed homes.
In our latest Barometer, the dominant trend might have been still one of falling prices but there is another emerging.
Four counties – Dublin, Wicklow, Cork and Kerry – saw growth in the median asking price of a four bed home in the last quarter while 11 more saw their prices remain unchanged. Amongst them was the likes of Westmeath, where prices have now remained unchanged for this type of home for an entire year.
Furthermore, two other counties showed declines of less than 1%, meaning well over half of the 26 counties are showing signs of stabilisation in the price of a 4 bed semi-detached home.
This shows that what people are really after now is a quality, family home. There is also greater value out there now meaning, on the whole, people are getting more bang for their buck.
This also means that many people are skipping the purchase of a starter home, rather waiting until they can afford something that will cater to their needs for many years to come rather than just a few.
This has meant that sales of apartments and the likes of 2 beds have suffered and, to a lesser extent, even 3 bed semis.
It is a definitive positive for the market though and comes at a time when transactions are up by 12.5% for the first five months of 2013, compared with the same period in 2012. The latest data from the Property Price Register shows that there were 8,622 transactions across the country between January 1st and May 31st 2013, as opposed to 7,547 sales in the same period for 2012. This is despite the withdrawal of mortgage interest relief at the end of last year.
Things are slowly improving in the market and that can only be deemed a positive. Obviously, no one wants to see a return to the recklessness of the boom years and sky-high prices but a healthy economy generally goes hand in hand with a healthy property market.
There are people out there looking to buy, but equally there are those looking to sell but feel they can’t at the moment because of negative equity. These are still issues, as is the lack of lending from banks.
The latest figures from the various property reports, as well as from the price register, show that there is a silver lining on the horizon though.
Today we’d like to know your opinion on the current state of the market?
- Where do you see prices going from here?
- Is there a lack of stock of good quality family homes available?
- Is there a need for building to recommence soon for the type of homes that are in demand?
Have your say in the comments section below…