Commenting on the most recent CSO Residential Property Price Index for May IPAV, the Institute of Professional Auctioneers & Valuers has said the acceleration in prices seen in the publication is likely to continue for the foreseeable future until supply improves and moves more in the direction of meeting demand.
“Unfortunately the dichotomy between supply and demand is great and the prospect of that changing in any meaningful way in the near future looks bleak and the consequence of that is that prices will remain elevated,” said Pat Davitt, IPAV chief executive.
“Aspiring buyers who may have been anticipating a drop in prices arising from the pandemic now realise that is not going to happen and they are moving ahead to try and buy homes, many using the opportunities opening up with new working arrangements to buy in areas that may not have been on their horizon heretofore.”
He called for workable solutions to increase the supply of homes and at affordable prices.
“The housing commission being set up under the Programme for Government needs to get to work and involve all stakeholders in the housing market, and it needs to find solutions urgently,” he added.
He said those solutions must involve State investment as recently recommended by the ESRI, planning issues, local authority utility investment, and a review of the tax take on housing.
“We need this so that the market develops in a sustainable way and avoids volatility,” he concluded.
