Commenting on the most recent CSO Residential Property Price Index for August, IPAV, the Institute of Professional Auctioneers and Valuers, said while the number of dwelling purchases in August plummeted by 40.2 percent compared with August 2019, indications are from the market that the situation has improved considerably since then, there is a 44 day submission deadline on Revenue stamp duty returns on which CSO figures are based.
Pat Davitt, IPAV Chief Executive said overall property prices are holding fairly steady.
“While activity has ramped up as the industry has adapted amid the pandemic, the lack of supply of properties is an issue, along with affordability and with lenders acting in a severe risk averse way,” Mr Davitt said.
He added that new homes priced between €250,000 and €300,000 are already too expensive for young people on an average wage of €40/50,000.
“Much will now depend on the success or otherwise of the Government’s Budget measures. Supply needs to be ramped up and affordability improved,” Mr Davitt stated.
Mr Davitt said it was disappointing that the Help-to-Buy scheme was not extended in yesterday’s Budget to include second hand homes.
“While the extension of the existing scheme to the end of next year is a positive development, it is disappointing that second-hand homes were not included.
That addition to the scheme would have brought an extra bit of stability to the market, creating greater movement and availability of homes,” Mr Davitt asserted.
He also said the Housing Commission promised in the Programme for Government needs to bring all elements of housing policy together.
“All industry stakeholders must be included. Isolated interventions that have not been fully thought through bring negative unintended consequences,” Mr Davitt explained.
