Economist advise homebuyers in Ireland to stay rented and not buy a home immediately
DUBLIN: A renowned economist advises home buyers in Ireland to stay rented and not buy a home in the near future. Economist David McWilliams has said that Irish hosting market is now at ‘peak dysfunction’, and therefore people should stop searching for a home to buy immediately.
Mr. McWilliams, who emphasized the fact that viewings are currently not allowed until sales have been agreed, said that this is the worst period for value in Irish housing in over a decade. He also highlighted that house prices in Ireland are rising while rental prices are dropping.
According to the economist, the number of properties available for purchase in 2020 has decreased by 40%. He claims that this is due to the government’s regulation in light of COVID-19, which bans homebuyers from viewing a property until a sale agreement has been reached.
“So what that means is two things are happening in the Irish property market right now. One is rents are falling rapidly in Dublin but house prices are increasing rapidly. So, as a rule of thumb, when rent prices are falling and [house] prices are increasing – do not buy,” Mr. McWilliams said.
“What I’d say to you is, if you are looking for a house now, stop, desist, continue to rent. Do not go into the market,” he added.
According to him, a lack of availability of second-hand homes and new builds due to a halt in construction are among the many reasons why the housing market is currently dysfunctional.
“In two or three years, all the construction that was put on the back burner [with the current situation] will be accelerated. So there will be lots more new apartments, lots more new developments.”
“Once viewings get back, there’ll be lots more second-hand houses and apartments coming on the market, so you would be crazy to buy right now. Now is probably the worst point of value, value for money for your euro, that we’ve seen in ages,” Mr. McWilliams said.
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