CORMAC SHEEHY, MD, RE/MAX PROFESSIONAL PARTNERS
You cannot pick up a paper or listen to the radio without knowing that property prices are escalating.
Everyone is an expert in a market like this but whether you think that property prices are way too high or not high enough sometimes it is important to get to the reason why this is so!
We have gone through the last 15 years without any building but with an explosion in population growth. According to the daft.ie Q1 report, the average listing price in County Westmeath is up 10.8 percent to €230,690 which is approximately €40,000 less than the national average listing price year on year.
Data obtained from the IPPi platform reveals that last month within the county the average sale price per property (excluding one beds ) was €220,708.75 while the national sale price per property last month was €335,510.
Obviously, there is a direct relationship between supply, demand and property prices, but something that often escapes the many commentators is the price of borrowing being at all time lows.
Rates in the two percent range were unheard of but we have them now and that thus reduces the effective cost of a house for purchasers.
When I bought my first house I was happy to fix at 4.5 percent for five years. Match that against the rent prices being at highs, first time buyers are now extending mortgages until 68 to avoid the pain of a higher mortgage payment. I am not going to say whether this is prudent or not but it is not something I would do.
To those sitting on a rental property I would advise of disposing now. Not only will you get a great price for your property but you will help ease the lack of stock for first time buyers.
If you want a no obligation consultation please give us a call on 09064 17024.
