76% of people expect house prices to rise over the coming year

Standard

Three out of four people expect house prices to rise over the coming year according to a new property consumer sentiment survey from MyHome.ie.

Twenty per cent of those surveyed said they expected prices to remain static while just 4% said prices will fall.

One in four of those surveyed said they planned to purchase a property in the next 12 months while just under a third said they had no plans to purchase a property. Forty one percent said they were undecided. The survey of 1,700 people was carried out by leading property website MyHome.ie earlier this month.

While the largest proportion – 47% said house prices would increase by up to 5%, 25% said they would increase by between 5 and 10% while 4% said they would increase by more.

Angela Keegan MD of MyHome.ie said that while the findings reflected growing consumer confidence, it was clear the Central Bank’s new lending rules were having a major impact on the market.

“Fifty one percent said the planned Central Bank review of its lending rules would make them consider holding off on a purchase for the time being while 28% said they didn’t have the funds to pay a deposit. When we asked people for the factors which they believed would influence participation in the housing market, over 40% said lowering the deposit required, 38% said more stock coming on the market and 35% said confidence in the overall economy.”

“So really these figures support what we are hearing from estate agents on the ground. First time buyers, particularly in Dublin, are struggling to meet the new deposit and 3.5 x loan to income ratio laid down by the Central Bank last year. In the survey 13% of respondents said their application for a mortgage had been refused, which is quite high.”

“While the CBI measures were necessary to curb runaway inflation the supply part of the equation has continued to deteriorate and this has led to an increase in rents and sadly an increase in homelessness. The first priority of the new government should be to address this issue before putting a comprehensive housing plan in place” Keegan said.

Property types

Not surprisingly the three bedroom house remains the most sought after property type on 47%, followed by the four bed on 33% and the two bed on 17%. Almost half of respondents (45%) said the garden was the most important feature in a home, followed by an open plan kitchen on 22% and off street parking by 20%.

The preference for a second hand house versus a new build was 2:1. Proximity to schools or crèches was the most important amenity 27%, followed by good public transport network on 23% and proximity to extended family on 18%. More people said proximity to a local pub was the most important amenity (4%) than being close to parks/playgrounds (3.6%).

The post 76% of people expect house prices to rise over the coming year appeared first on MyHome.ie Advice & Blog.

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