Sherry FitzGerald reports encouraging and positive start to the Galway residential market in 2020. Sentiment and market activity showed substantial improvement over the final quarter of 2019. Viewing levels on all properties launched to the market in January and February have been very healthy and are up by 30 per cent on average compared to October and November 2019.
This positive start can be attributed to several factors. Brexit, while happening, is being progressed by agreement, and we have avoided the much feared “crash out Brexit” which would have had serious consequences for Ireland. The Irish economy continues to perform very strongly with GDP for 2019 of 5.5 per cent and forecast for 2020 of 3.3 per cent, which in a European context is the best performing economy. The unemployment rate has dropped to 4.7 per cent, representing near maximum employment and much improved from 16 per cent unemployment in 2012. The Help to Buy Scheme has been extended for a further two years and is proving attractive to first time buyers as it allows them to get purchasing a home sooner, there are currently 740 applications at claim stage for County Galway. Even though 2019 was a more difficult market, mortgage draw downs peaked in Q4 2019 for the previous 10 years. Approximately 80 per cent of purchasers are buying for owner occupation and 15 per cent are investors. The population continues to grow with net migration into the country in 2020 estimated at 35,000 people, which will add further to the demand for housing, be it rented or ownership.
The positive economic prospects for the Irish economy, the increasing demand for housing, historically low mortgage interest rates, and continual improvement in mortgage draw downs all point towards a healthy residential property market in 2020.
Tony Kavanagh, director of Sherry Fitzgerald, commented that the strong level of turnout at open viewings has been extremely encouraging over the last eight weeks. He gave examples of a property in Gleann Rua, Renmore, where 12 and 14 parties turned up to the two open viewings, and the property is already over asking price with bidding. Likewise, a property launched in Laurel Park, Newcastle, in early February had 10 and 12 viewers respectively at its two open viewings, and again bidding is currently over asking, and the company has numerous examples of this positive activity.
Now is the start of the spring selling season, and Sherry FitzGerald is encouraging its clients to get their properties on the market to take advantage of the positive demand currently in the marketplace. Tony Kavanagh and his team can be contacted on (091 ) 569123 and are happy to offer a free market appraisal of your house and provide advice on selling your property.
