Housing demand severely outstripping supply- IPAV

CSO data shows there were only 5,118 new dwelling completions in Q3 2020, a 9.4pc drop on the 5,652 completions in Q3 2019

Commenting on today’s CSO Residential Property Price Index for November, IPAV, the Institute of Professional Auctioneers & Valuers, says the slight increase in prices nationally “defies inaccurate predictions of major price drops” when the Covid-19 pandemic hit.

Pat Davitt, IPAV Chief Executive however said the decline of 4.3pc in the Mid-West region was “somewhat surprising, given a discernible increase in demand for rural homes as a response to Covid-19, and “an acceleration in the practice of working from home.”

He said, as a result, there is a scarcity of property hardly ever seen in Ireland before.

“The big trend right now is agents seeking properties for buyers with anything up to 60pc of them in a position to buy without a mortgage.”

While affordability remains an issue in urban areas, properties outside of these areas are still cheap but IPAV believe the Central Bank macroprudential mortgage rules are far too severe on those on average wages.

“Ironically interest rates are lower than they have ever been, even if they are still much higher than the euro area average; fixed mortgages are now available for up to 10 years and rents are substantially higher than mortgage repayments.

“While there is housing stock available in rural areas there is a severe lack of properties in areas of strongest demand,” he said.

Pointing to CSO data showing there were only 5,118 new dwelling completions in Q3 2020, a 9.4pc drop on the 5,652 completions in Q3 2019, Mr Davitt called for the setting up of a Housing Commission promised in the Programme for Government.

“Isolated policy interventions over recent years have plagued the market delivering severe unintended consequences.”