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.
Buying & Selling in the Irish Property Market
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.
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.