What will happen to Irish house prices for the next year?
Property prices will moderate over the next year, but they have risen so much in the past decade that buying in most places remains out of reach for many people on average incomes.
Even though the rate of increase in property values is due to ease off, prices are still set to increase by 4pc this year, a survey of estate agents carried out by the Society of Chartered Surveyors Ireland (SCSI) has found.
Market factors such as supply and demand have been the main factor underpinning expectations However, in line with current inflationary trends, those citing economic factors (e.g., outlook for economic growth, general inflation dynamics, prospects for household incomes, and labour market conditions) has nearly doubled since the previous report with it now at 25% up from 13% in Q4 2021. This suggests that an increasing number of agents are looking at trends in inflation, i.e., rising inflation and prices and their impact on interest rates and subsequently household incomes, as having the biggest impact on trends to property values over the coming months.
As of Q1 2022, there was a slight upswing in sellers instructing sales when compared to the end of Q4 2021; however, overall there is no noticeable improvement in new instructions coming to the market when compared with recent years . Data from property portals illustrates a lower supply on the market available for sale than compared to previous years. Residential property available for sale on MyHome.ie in Q1 2022 was noted as being at a record low of 11,200 homes listed for sale nationally.
There is a continuing trend of buyers looking to purchase property outside of large urban centres where average property prices are lower, and properties are generally larger. This trend began with the onset of Covid-19, when many workers could work from home; however, with the continued price pressures on housing costs,. We continue to see high demand for more rurally located homes.
Buyers are increasingly seeking strong broadband connections and sufficient space around the property to perhaps expand homes or construct an out-office for remote working. It is unclear how long this trend will continue for; however, one of the limiting factors is the low and further declining levels of available stock to purchase.
Selling your home is a big decision and there are a number of factors to be taken into account. Firstly you need to ask yourself why are you selling? Do you need more space? Are you downsizing? Can you afford to move?
There is no right or wrong time to sell your home, its down to ones individual circumstances. However if you want to achieve a high price for your property, now is a good time to sell when the the market is strong.
The DNG Galvin team services Bandon, Kinsale, Clonakilty, Courtmacsherry, Ballincollig, Bishopstown and surrounding areas throughout Cork City and West Cork.