THE residential property market has seen a significant increase in activity levels and sales transactions during the second quarter of this year.
A survey conducted by the Irish Auctioneers & Valuers Institute (IAVI) reported an increase in the volume of transactions with a balance of “sales closed” to 27% compared to 17% in quarter one, with respondents in Dublin alone reporting an increase from 37% to 49% in quarter two.
The group also reported an increase in enquiries (39%), viewings (38%), offers (34%) and sales agreed (32%), although these were more moderately paced than the traditionally busier first quarter.
Member of the IAVI residential panel and national council, Simon Ensor, said: “It is encouraging that the volume of transactions has increased and that activity levels continue to improve, particularly in Dublin which often serves as an early indicator for the national market.
“However, any recovery in the property market continues to depend on economic conditions including employment levels, the availability of mortgage finance and the short to medium term effects of NAMA.”
The survey also indicated a trend of moderate decline in residential values in quarter two, with a number of IAVI members reporting second quarter price declines of more than 5% relative to quarter one.
Of those surveyed, 86% reported that vendors’ price expectations had become more realistic since the beginning of this year.
Mr Ensor added that they were very concerned that the lack of clarity on property tax will result in the National House Price Register not being introduced, despite being part of the programme for government.
“House price transparency is essential for the sustainable operation of our housing market and it is within the Government’s remit to provide with a simple change to the data protection legislation,” he said.
The survey also showed that the time it takes to sell a property in Munster is up two weeks to 28 weeks, up three weeks to 34 weeks in Connacht/Donegal and has remained static in Dublin at 15 weeks.
© Irish Examiner Ltd. All rights reserved