There is a surge in the number of houses for sale as owners look to take advantage of rising prices for the first time since the bubble burst.
This is according to the latest research by Daft.ie, which has chimed with a similar survey from its rival Myhome.ie. Both show that the well-publicised recovery in the Dublin market has spread to the commuter counties and Cork.
Average asking prices across Ireland rose by 5.5% but, consistent with other figures, this was heavily skewed by increases of more than 20% in almost all categories in the active Dublin area.
The trend has spread to commuter counties and, unlike the Myhome.ie index, Daft’s figures shows it has moved further afield to counties like Louth and Kilkenny.
The city markets in Cork and Galway have also witnessed the first, sustained pick-up compared to the rest of the country, which continues to flatline.
Daft said across the country there were 15,000 properties put up for sale in the second quarter of 2014. In Dublin there were 3,500 properties advertised on Daft between March and June, a level of supply last seen in 2007. And, according to Daft, three-quarters of homes that go on the market are now finding a buyer within four months.
This compares with 44% of properties in Munster that change hands within four months of being listed.
Economist Ronan Lyons, author of the Daft report, said there is a need for additional supply in the right areas and this would not be satisfied by a trade in existing houses alone.
“Greater churn will only get us so far. Building is the solution. There are simply not enough dwellings relative to families in Ireland’s urban areas. To those living in many rural areas, blighted by half-built ghost estates, this may seem an odd solution. However, what first-time buyers prize now is access to amenities, in particular the amenity of job creation, which goes hand in hand with population density,” he said.
Mr Lyons also said there needs to be an incentive for older people living in houses that are now too big for their needs to move out.
And he said this is possible with a higher rate of property tax to make it uneconomic for parents to stay in family homes once their children have moved out.
However, with the shortage of supply getting more pronounced in certain areas, the focus has been put on the protection of people in long-term rental agreements.
A separate study, carried out by Red C for the Society of Chartered Surveyors in Ireland and the Private Rental Tenancies Board, found that 60% of renters had difficulty getting their deposits back.
Vincent Hickey, chairman of the SCSI’s property group, said since 2006 there has been a doubling in the size of the rental market and it was important that people knew their rights.
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