Uncertainty in housing sector, experts say housing prices in Ireland will fall by the end of the year

Experts in the housing sector have concluded that the predictions related to house price reduction during Covid is not factual. At present, the market is only reflecting the 0.7 per cent fall in inflation.

Another observation is that the main reason for the constant public market prices is that there are huge demands for homes that are nearing completion.

But experts say housing prices could drop by an average of 30,000 euros by the end of the year.

The latest CSO figures show that nationally, house prices have risen by just 0.1 per cent in the year to June. The current national average price is less than 287,000 euros.

Figures says that sales are down 33% from June last year. Sales of 3,391 homes in June 2019 fell to 2,268 in June this year, down from 1123 in the previous month.

Property experts say most of these sales are before the full impact of the lockdown hits the market.

At the same time, John McCartney, director of research at property agent Wills, says he does not see Covid’s influence in the June price index.

It is assumed that there may be a delay in the calculation of the CSO index. The current data is from sales that closed in June, which means that they are for sale in February or March.

People who agreed to the sale in March will have six weeks to hand over the contracts. Once the contract is transferred, their advance cannot be refunded. In this case, some of them went backwards, which is why the number of transactions in June was low, McCartney said.

Revenue data shows that the first buyers in June were 804. It was 1,129 in June last year. But in the ensuing months, demand was off the market.

Despite raising the tax credit to 300 30,000 in July, the real estate mafia has been raising prices in the market accordingly as demand has increased.

Recession of demand and competition from mortgage companies

With the uncertainty in the market and the competition from the mortgage lenders, the demand has shifted to the need to wait a little longer.

AvantCard, which already has a presence in the credit card and personal loan market, has announced that it will start selling mortgages in the Irish market in the coming months under the Avant Money brand.

Naturally, other banks will not be able to hold on unless interest rates and benefits are reduced.

Competition in the rental sector

The figures from Daft, a property website says that the number of homes for sale in Ireland is at its lowest level in 14 years. As of August 1, 19,538 properties were sold across the country, according to IE.

Meanwhile, more homes have arrived in the rental market. At the national level, the availability of rental housing has risen sharply to 41 percent. In Dublin, it increased by 92%.

In Dublin, more than double the number of homes in the market a year ago. According to Daft.E, there are now 3,000 homes, up from 1,600 last August.

The increase in rental housing is due to the withdrawal of landlords from short-term listing sites such as Airbnb.

Naturally, even those who are preparing to buy a home are more likely to put it off for a while if the rent goes down. By the end of the year, it will be more favorable time for the much-needed ones of the housing sector as there will be mortgage availability, an increase in the availability of housing, and a significant reduction in rental rates.

There are now indications that the housing sector in Ireland will return to the level it was in before the 2008 financial crisis, later this year.