House price increases ‘tapering off’

ALTHOUGH house prices across the country continue to rise, agents are reporting a “tapering off” in the level of increase.

The Residential Property Price Index for November published by the CSO recently shows house prices continued “creeping up”.

Local auctioneer Declan Woods of Sherry Fitzgerald, Cavan, also sits on the board of the Institute of Professional Auctioneers and Valuers (IPAV).

He told the Celt that, while prices are still in an upward trajectory, “we don’t expect that growth to continue throughout the year.”

In his experience “some properties are taking a little longer to sell”, which, he puts down to “caution creeping in” as prices continue to increase.

“Supply is still the biggest issue,” as far as Declan Woods is concerned and he said increasing supply should be the main objective of developers and the state.

“Believe me, agents would rather see a better supply to steady prices and provide better buying options for everyone,” he said.

Newly-appointed Chief Executive of IPAV, Genevieve McGuirk, concurred with the Cavan agent’s views.

She said the CSO figures show a slowing in the rate increase across the country since August.

“Agents are reporting a strong start to the year. There is a small increase in supply, a lot of properties coming on the market need work and many of these are likely to be small landlords selling up in advance of new rent rules.

“Overall, it would appear that prices are still creeping upwards but there is a softening with slightly longer timelines to achieve sale,” Ms McGuirk said.

“Demand is still way ahead of supply but there is optimism around government measures such as its infrastructure plan,” the Chief Executive of IPAV said.