Buying & Selling in the Irish Property Market
03 Mar 2015
Posted in: Mortgages
At the recent AIB Mortgage Information Evening in The Spencer Hotel, Dublin, we spoke to Daft.ie about the current state of the Irish property market for individuals looking to buy and sell properties.
Every quarter, Daft.ie produces and publishes their Sales and Rental Reports. These are written and presented to the media by Ronan Lyons, Assistant Professor of Economics, Trinity College Dublin and Economist at Daft.ie. The findings of their latest report below, show the following for both prospective buyers and sellers in the Irish property market.
Daft.ie was founded in 1997 by brothers Eamonn and Brian Fallon. The site is visited by two million individuals each month and nine out of ten properties sold in Ireland are sold through Daft.ie. On average, around 150,000 properties are listed on the site at any one time and there are 1,000 property searches every minute.
Property prices are rising
From 2013 to 2014, house prices nationally rose by about 13% whilst Dublin house prices rose by 20%. While this might lead you to forecast another Irish property bubble, a shift at the end of 2014 with house prices falling by 1% might suggest otherwise.
The main concerns are credit and supply
This fall in house prices was caused by expectations emerging from the new Central Bank regulations coupled with concerns over the current supply shortage in adequate housing. Daft.ie has been conducting a sentiment survey since 2012 that reinforces this theory. In 2012, 30% of people were concerned over supply in the market for houses. However, in 2014, the number of people worried about both credit and supply of houses had risen to 70%.
The decline in housing stock continues
There is just cause for concern over the supply of houses for sale. On December 1st 2014, the number of houses for sale available reached a record low nationally since 2007. In 2009 there were 60,000 properties for sale. By the end of 2014, there were less than 30,000 houses available to buy.
In the Dublin property market, 3,500 properties were available for sale on the first of December 1st - a third more than 12 months prior. However, housing demand is stronger. 10,000 new households are being added to Dublin every year with only 1,500 new properties being provided. Daft.ie’s research here illustrates why housing supply in Ireland is a genuine cause for concern.
The turnaround time in the Irish property market
Current property price trends reveal properties are now selling for 5% more than asking prices. If you are selling and consequently buying a house, the turnaround time has quickened. 62% of properties on sale, now find a buyer within the first three months compared with just 49% a year ago. This trend indicates strong demand for good family homes, which are being snapped up very quickly.
If you’re a first time buyer considering buying your first home in Ireland, check out our AIB First Time Buyers Guide. Dip into our AIB Mortgage Calculator discover your borrowing potential.
Allied Irish Banks, p.l.c. is an authorised agent and servicer of AIB Mortgage Bank in relation to origination and servicing of mortgage loans and mortgages. AIB Mortgage Bank is regulated by the Central Bank of Ireland. For regulatory information, please see here.
