Appetite to buy homes is on the increase

The appetite for home-buying is on the rise even though most prospective purchasers still expect prices to fall further.

A survey by property website Daft.ie found 17% of those questioned hoped to buy a home as soon as possible while almost half (45.5%) intended to close a deal within the year.

That is an eight-point increase in the percentage who felt ready to make a move within a 12-month window last year and it comes despite the feeling that prices have another 5% or 6% to drop this year.

The findings come a fortnight after another survey showed rents were on the increase nationally for the first time in six years while the availability of rental properties was declining.

More than 2000 people were questioned in the latest survey and more than half of those were renting so the state of the rental market has an influence on the decision to buy.

It is not the biggest factor, however, as prospective buyers were more concerned with unemployment and the economy in general and felt most hampered by the need to save a deposit and by difficulties obtaining a mortgage.

None of that has lessened their ambitions though as the survey shows on average people plan to buy a home that is more expensive than the national average asking price.

The average asking price is €171,000 but those questioned want to buy something with a price tag in the region of €229,000.

That would appear to be backed up by the finding that fewer people than last year are considering buying an apartment.

Three-bedroom houses are by far the most sought-after type of prop-erty although there is also an increased interest this year in two-bedroom homes and an equal decrease in the popularity of four-bedroom properties.

The findings suggest a move away from buying a small property with the intention of trading up soon after. Kieran Harte, marketing director for Daft.ie, said: “Coupled with the inquiries we are seeing through the site, it would suggest that many people are looking to purchase family-sized homes in which to live for the long term.”

Commuter belt living is not a top choice, with 40% saying they want to buy in a city centre, but quality of life is the number one factor in deciding on a location with the biggest draw being “social capital” such as the perception of a place as a good neighbourhood or having a good sense of community.

Mr Harte said: “It is interesting to see that more respondents are intending to purchase this year even though they are not expecting house prices to stabilise.

“Whether the increased intent to purchase turns into a higher level of transactions will also depend on whether suitable properties are available on the market along with the availability of mortgage credit.”