Property reports show signs of stabilisation in market

Property reports show signs of stabilisation in market

Are things looking up for the property market?

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…

There are 9 comments for this article
  1. Joanne at 3:47 am

    herd mentality and people looking for a “bargin” might make it seems as I’f there is stabilisation in the market but this is short term, repossessions and new insolvencieny act means people are biding their time before they can avail of these laws, to dispose of the property they cannot afford, give back the keys, avail of bankruptcy law, which will mean mass repossessions and more property on the market, allsop etc will have a field day.
    While the buyers/seller market remains slow, what about the poor renter, who is now paying more in rent than the rate of a mortgage per month, rents are definitely rising because people are not buying. This is an indication I think of the lack of movement in the market.

  2. Kon at 5:07 pm

    I don’t believe a word. Only thing I see is that Property Agents try to push prices up – absolutely unreasonably from buyer’s point of view. I guess we will see massive drop soon is all property selling businesses will continue balloon games, ordinary customers and first time buyers will be pissed off.

  3. Andrew at 2:45 pm

    Recovery? Recovery for who exactly??
    This country is facing mass repossessions shortly which will impact the housing sector. If there is a ‘recovery’ I don’t expect it to last…

  4. Adrian at 2:43 pm

    ” a healthy economy generally goes hand in hand with a healthy property market” ….

    We are a long way from a healthy economy, ergo we are a long way from a healthy property market.

    What is happening at the moment is no more than a dead cat bounce IMO. A bit of herd mentality mixed with a shortage of properties for sale – i.e. some people bought because mortgage interest relief was to be removed, this gave the market a bit of momentum and now there is a bit of a herd mentality – “get a bargain while you can”.. This is the equivalent of the people who queue over nights for the sale, the best bargains are to be had closer to the end of a sale, but herd mentality is what is it..

  5. John Brennan at 1:40 pm

    Living in D14 I have to say that there is a definite rise in the market for certain houses and some apartments.
    The good four bed or more family home is in short supply and those coming on the market are moving quick and usually above the initial asking price.
    I think the estate agents are being more shrewder with viewings. They are limiting the viewing to groups rather than bring along an individual viewer. This is creating the impression that there is a greater demand thus commencing a bidding war.
    Apartments are slower to sell but the better ones e.g Wyckham Point, Dundrum are attracting a lot of viewers but strangely enough more non Irish viewers than Irish.
    Have we lost our love affair with apartments?

  6. Colm at 12:14 pm

    As long as the government keeps increasing taxes there will be no confidence among the general population that they can afford to buy a house.
    In the next year or so we will have:
    – “Adjustments” to income tax bands that mean we pay more income tax.
    – Increases to excise duty and vat on Petrol/diesel.
    – Cuts to child benefit.
    – Increases in private health insurance (led by a government owned VHI)
    – Increases in banking fees (by government owned banks)
    – Councils get the power to increase the Property tax by 10% and you can bet they will.
    – Schools are all putting up their “voluntary” fees that everyone MUST pay.

    And you can bet the government are coming up with more innovative ways to put their hands in our pockets. So it is likely that however bad you think things are today it is likely that the government will be taking yet more from you this time next year and giving you far less in return.

    And that’s even before the government owned banks start increasing variable rate mortgages again (and for anyone buying now it will be variable as the trackers are long gone). The ECB rate no longer has any relation to the rate in Ireland. If you are buying then it will be all but impossible to predict how much you will be paying for the mortgage in a year and how much disposable income you will have. Between your take home salary going down (thanks to taxes etc) and the mortgage repayment interest rates going up there could easily be €200 less in your pocket at the end of the month.

    Anyone thinking of buying now needs to do a serious stress test on their financial position.

  7. whistling jack smith at 12:04 pm

    I don’t believe a word about the ‘recovery’. Some houses ARE sold where they are being realistically priced.

    When an average house is roughly 4 – 5 times the average wage that is the bottom of the market.

    Beware the vested interests: estate agents, valuers, newspapers.

  8. danko at 11:54 am

    If only the banks would let the tracker mortgage holders to move their existing mortgage balance to a new home the property market would recover much quicker.

  9. Karl McNamara at 11:48 am

    To whom it may concern,

    I currently have a mortgage with EBS for a house I purchased in September 2008. My wife and I work in the public sector and we have seen our salaries cut significantly in the last few years. We have been paying interest only on our mortgage for the past 2 years and we wrote to EBS to seek support with our mortgage. We asked to split our mortgage so we could begin to pay money off the capital and to have it reviewed every 3 years. Today we received a call from EBS to say this had been rejected and we now need to pay the full mortgage.

    We now have to pay the same monthly amount as we had to pay back in 2008 at the height of the “boom” which is in excess of €1,800. They are still making the same profit as they were in 2008 after all that has happened in this country.

    This clearly shows that banks are not prepared to help people in difficulty and are not taking any responsibility for the hardship burdened on the people of Ireland. I think it is time that banks get to grips with reality.

    A very disillusioned mortgage holder!

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