Report says most homebuyers believe next year will be a good time to buy property

Most prospective homebuyers in Ireland are hoping that the buying and selling of property destroyed by the Covid-19 will be rectified by next year.

It was revealed in a survey which was conducted a few months back by property website MyHome.ie that, six out of ten respondents said they believed 2021 would be a good time to buy property, with over a third (37%) believing prices will drop by over 10% in the next 12 months.

More than 65% of them believe that during the Covid crisis the government would be able to support the property sector.

According to the analysis by Economic and Social Research Institute (ERSI), the extent of the collapse in the market is not yet fully clear. But they expect that, due to the Covid-19 crisis, house prices in Ireland could fall by as much as 12%.

Research suggests that housing prices could fall by 12% by the end of 2021 if the current economic crisis is reversed. And if it is not possible, the current price will remain the same.

The survey also found that they were motivated to buy properties next year because they knew there was more housing stock available, more confidence in the economy, and a easing of mortgage lending laws.

Half of the respondents agree that online viewing of properties is efficient effective as there are Covid-19 restrictions.

Managing Director of MyHome.ie, Angela Keegan said, “even though Covid-19 has essentially frozen the market, this survey shows that prospective buyers are still confident about their ability to purchase in the coming year, possibly driven by an expectation of falling prices”.

Construction has to go on without any interruption, but it is concerning that due to the current situation supply issues are a major problem.

The ESRI report warns that, given that Ireland is already facing a major housing shortage, the impact on construction could push house prices further upward as the domestic economy recovers, exacerbating affordability problems.