Recent
economic data showing that Ireland’s economy is now expanding seven times
faster than the European average and at a pace not seen since 2007 should
ensure the continued recovery of the property market over the next number of
years. With Ireland’s growth forecast upgraded from 2.1% only last April to
4.5%, an increase in employment, reducing emigration and higher disposable
incomes should ensure increased demand by young workers to get a foot on the
property ladder.
As first
time buyers enter the market in increasing numbers and with no new homes being
built locally, owners who bought their starter homes ten or fifteen years ago
will have a greater opportunity to trade up as they find there is more demand
for their homes. Eventually, the demand at the lower end of the market feeds to
the higher end. In Tramore, only seven houses sold in 2013 over €250,000. I
would expect the figure to be twice that by then end of 2014.
The
improvement in the market is evidenced in the Property Price Register where the
number of houses sold in the first eight months of 2014 is up 25% on the
corresponding eight month period in 2013. In addition, the total euro value of
sales in this period increased by 22%. This is partly due to the fall in the
proportion of sales made up of holiday homes.
What is
happening locally can often be at odds with the evidence produced in national
house price reports. For example, figures released by Daft.ie last month showed
a fall in the asking price of houses of 3.7% in Waterford city over the last
twelve months and a fall of 1.5% in Waterford County. Our experience in Tramore
on the other hand is that asking prices and prices achieved have increased,
albeit marginally, over the last year. The housing market is full of micro
markets and all that really matters is what is happening in your area.
Barry Herterich BA MIPAV REV
