November property market update
Rounding up a year of unprecedented events, the property market is playing its part and doing some unusual things right now .Shall we take a quick look at what has been happening.?
What was happening to property prices earlier this year?
Increased supply & Covid = Property price drop
By the end of June of this year, a combination of increased supply combined with the effect of Covid resulted in a 4% fall in property prices nationally as compared with prices in Q2 2019.
Something surprising is happening now
In spite of Covid and increased levels of unemployment, property prices are rising
Something surprising is happening now. Property prices in Quarter 3 (July , August , Sept 2020) have risen by 4.8%. This is due to a few key things, first and foremost a lack of property for sale. Supply in Dublin has dropped by 25% compared to Q3 2019. Another key factor is an increase of saved income among those whose employment has been unaffected by Covid and who have managed to save as a result of not being able to go out and spend money the way they usually did. A further factor is the emergence of an increasingly motivated bunch of buyers who want to use their hard won loan approval before any more unexpected things happen in the world or their lives.
We aren't seeing the increased demand predicted for homes in commuter belts and rural areas
What was expected is that larger houses ( eg. houses that could easily accommodate home offices) or houses in the commuter counties ( for workers who no longer need to get into the city centre for work) surrounding major cities have failed to increase in price in the manner anticipated. Perhaps it's just a matter of time before this trend emerges?
What do I think is going to happen?
Here goes!
Prices will continue to rise until supply increases and supply is only likely to increase when vendors feel the market is back to normal. The market is likely to return to "normal" when people are able to move around freely and a regular working environment has emerged. It's hard to see this "normal" world returning until either a vaccines is made and distributed as needed or a sustainable containment pattern for Covid has been established in Ireland.
We’ll see an increase of properties purchased by non Irish who appreciate the relative wide open spaces and clean environment offered by Ireland
Urban based buyers with newly flexible working regimes will increasingly include commuter counties in their property search
Do you want to find out more?
If you'd like to get thoroughly up to date on the Irish property market, I whole heartedly recommend you take a look at the latest quarterly DAFT House sale report from the brilliant Dr. Ronan Lyons at DAFT.ie to whom I'm indebted for the information here.
Are you a highly motivated buyer?
If you're one of those highly motivated buyers that we're seeing in the market right now, you might be interested in my mini training on the Bidding Process. I've added two videos to this training since I last spoke to you about it.
Short sample of one of the videos in my Insider's Guide to The Bidding Process
That's all for this week. Thank you for being here.
