Sharp Decline In Housing Supply

01 Jul 2020 | 01.16 pm

Sharp Decline In Housing Supply

Market overview from Sherry FitzGerald

01 Jul 2020 | 01.16 pm

Second hand housing stock available for sale is currently 22% less than summer 2019, according to Sherry FitzGerald.

The estate agent says there are 5,000 fewer properties on the market than a year ago.

Managing director Marian Finnegan (pictured) said that in the March to May period there was a reduction year-on-year of over 10,000, or 69% in the volume of second-hand properties brought to market.

April and May usually represent two of the busiest months of the year for new listings.

“We started 2020 with a housing crisis and unfortunately that has only worsened,” said Finnegan. “The combination of reduced construction activity, a loss of second-hand stock coming to the market and the continued exodus of investors from the residential lettings market all serve to further damage market stock levels.

“It is therefore imperative that policy measures to support viability and affordability of the market are implemented promptly by the new government to allow activity levels return to normal.”

Finnegan added that the average value of second-hand homes in Ireland remained broadly stable through Q2. For H1 2020, nationally there was a small 0.1% rise in prices. This compares to growth of 0.6% in the corresponding period last year. In Dublin, prices were also unchanged in the quarter, recording a negligible 0.02% fall in the six months period to the end of June.

House prices outside Dublin were static in Q2 and are up 0.3% year to date. In the regional centres of Cork, Galway and Limerick, prices have appreciated by 0.4%, 0.6% and 0.2% respectively so far this year.

“The stability of prices to date underwrites the combination of strong demand and the supply side shortage in the housing market, something which will be exacerbated by the reduction in construction activity during this year,” Finnegan stated.

“Furthermore, since the easing of lockdown restrictions and the re-instatement of physical viewings on June 8, activity levels have been brisk and sentiment very positive among buyers.”

After a survey of 1,600 potential purchasers, Sherry FitzGerald says sentiment was unaffected by Covid-19 for c.60%, with one in five respondents saying they are even more committed to buying.

Four out of five survey respondents are seeking a house or apartment of less than €500,000 in value, and two thirds of them have been actively looking for a property for less than six months.

Pix: Mark McCall

 

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