Canny investors snapping up 20% of second-hand housing market

ALMOST one in five second-hand properties purchased so far this year was bought by an investor.

This is according to the latest Sherry FitzGerald house price index, which also found that the average price of a second-hand property in Ireland eased back by 1.8% during the third quarter of this year, with the results for the year to date down by 4.5%.

Chief economist with the Sherry FitzGerald Group Marian Finnegan said: “The stock of available second-hand properties is strong, thereby providing a healthy choice of property for potential purchasers.

“Activity levels have rebounded somewhat with an uplift in internet activity and viewing levels, a factor which bodes well for the demand trends in the coming weeks.”

Excluding the Dublin market from the analysis, the figures show prices falling by 1.2% during the third quarter and 1.0% in the year to date.

The Cork market shows price reductions of 2.1% in the quarter and 2.3% in the year to date.

“The performance of the property market in the year to date is reflective of the underlying consumer uncertainty.

“Originating in the furore of stamp duty in the autumn of 2006, this uncertainty was compounded by the rising interest rate environment and the tightening of financial sectors policy in relation to bridging finance,” she added.

“The net effect was a more challenging market place where purchasers and vendors alike were caught in a chain effect unable to sign contracts until their existing property is sold.

“That said, we remain absolutely confident that the fundamentals underpinning the market remain sound, a factor which will underwrite its performance in the medium term.”