The average value of second-hand homes in Galway and the west of Ireland grew by 3.5 per cent last year, according to Sherry FitzGerald.
These growth figures are reflective of a severe supply shortage. Excluding block sales and new homes acquired for social housing, there were approximately 1,400 recorded house sales on the Property Price Register (PPR ) in the county of Galway over the first nine months of 2020, a 22 per cent decrease compared to the same period a year before.
The volume of properties for sale in Galway remains critically low. In total, just over 1,100 second-hand properties were for sale across the city and county in January 2021. This represented an 18 per cent fall year on year. Overall, the stock of second-hand properties for sale represented just 0.9 per cent of the total private housing stock in Galway, a very low figure. New homes however showed a modest growth in completions with 1,061 new dwellings completed in 2020 a two per cent improvement year on year.
Tony Kavanagh of Sherry FitzGerald said: “We came into 2020 with a housing crisis that has been magnified by the impact of the pandemic. The stock of available property is now at a historic low and this exacerbation in supply level is maintaining upward pressure on prices.” Sherry FitzGerald's own house price barometer show average values in the second-hand market grew by 0.7 per cent in January. This is the strongest rate of monthly growth since 2017.
Demand for housing is currently very strong; data from the Banking and Payments Federation of Ireland shows that September, October, November, and December of 2020 recorded the highest monthly volumes of approvals in over a decade for these months respectively. Sherry FitzGerald have reported strong virtual viewing and inquiry activity for all properties currently listed together with brisk sale activity, even with disruption due to Covid restrictions.
"We are regularly asked is now a good time to sell," Tony Kavanagh added. "The answer would be yes, as all the market indicators are pointing to low supply levels, with strong demand meaning getting your property sold for a healthy price is more likely now than not."
Sherry FitzGerald can be contacted in Galway on 091 569 123.
