Stock horror! A view on the current state of the market

Stock horror! A view on the current state of the market

Every so often it is good to take stock of where the property market currently stands.

With that in mind it was interesting to hear Lisney’s views when they hosted a Property Investment Seminar earlier this week in conjunction with their global partners Cushman and Wakefield.

Aoife Brennan of Lisney gave a particularly interesting presentation at the seminar on the current state of the property market.

Indeed, she gave an opinion in relation to the current mortgage interest relief deal which comes to a close at the end of the year that would not have been what you might expect from a major estate agency.

According to Lisney’s research, the number of cash buyers in the market nationwide is currently as high as 45%. While they believe that figure to be slightly higher in Dublin, it is still a massive leap from the 2010 figure of 12%.

With that in mind, Lisney believe that the current extension of mortgage interest relief has not been a “major factor” in the recent growth in property transactions.

She said: “While those currently at sale agreed stage want to get it we feel that because there are so many cash purchasers, it doesn’t affect a lot of people anyway.”

Aoife admitted, however, that this was something that both Lisney and the property market in general would have to monitor going into 2013.

A map from Lisney of Dublin, showing how each area has suffered from a fall of stock in the last 12 months

Of perhaps more significance to Lisney was the problem in relation to stock.

Their research revealed that in Dublin, the amount of available properties on the market has fallen by 48% and is continuing to fall by 3% to 5% per month.

Indeed, areas such as Dublin 14, Dublin 16, Dublin 12 and Dublin 6 have all seen their stock fall by 60% or more.

That means that there is very little choice for people looking to buy. That problem, unfortunately, does not look like improving any time soon with many people bound to their current residence because of negative equity and many more afraid to move incase they lose their tracker mortgages.

We will have more from Lisney in the coming days but for now we’d like to get your opinion on the current state of the market.

Would the extension of mortgage interest relief make a big difference to you if you were considering buying? And is the stock out there at present suitable enough for the typical first time buyer or for families looking to expand?

Let us know in the comments below.

There are 14 comments for this article
  1. maria at 12:26 am

    I think its very sad to see new inexperienced first time buyers sucked in by predatory Estate Agents. I’ve seen them in action, like lambs to the slaughter they don’t stand a chance against your average wiley Estate Agent. Having read the comments above mine, seems I’m not the only one who wouldn’t trust one as far as I could throw one! One grain of truth however, stock is low in some areas of Dublin. Lets see what gems of interference the Budget brings to the property market, they just love to meddle…will they ever learn!

  2. des at 10:40 pm

    i am a cash buyer i would like to buy say a apartment or a house even second hand around 80 to 90 thousand i dont like the set up of buying with all the haggling i would like a set price given yours desmond

  3. Patrick at 7:24 pm

    Dire Straits looming again.Just when things seemed to be improving somewhat on our well documented property market,we pull the plug. If we are to believe all that is being said about our prospects for the next few years, I would seriously think of packing my kit and follow our already departed friends and family to lands that have positive ideas of family requirements,ie provide decent jobs with a decent income, thus enable hard working people to provide for their families without having to to worry sick about having to keep a roof over their heads.Why dont we do as we used to do,Provide our young people with a direct no strings attached lump sum of 10000 euro payable upon completion of their first home.Quit the red tape, and get things moving again.You know it would go a long way in getting rid of our semi complete NAMAs, which can still be found in abundance dotted around our cherished countryside,and elsewhere indeed.Guidance from above, and I suspect a good measure of providence in the absence of anything else may provide the solution.Patrick.

  4. John at 6:21 pm

    Eh 45% of people are cash buyers. Don’t think so. I know at least 5 people who tell estate agent they are cash purchasers when looking. They would in fact have about 25-40% cash and balance is a mortgage.

  5. Dermot Kearns at 6:10 pm

    There is a major shortage of good quality family homes in dublin and not only in D14,16,12 and 6 as suggested by Aoife. House prices will rocket all over dublin and co over the next two years. There is a strong demand for 3 bed family homes and little available. I now see smart well presented homes selling as quick 5 and 7 weeks of signs going up in Tallaght.

    Will the mortgage interest relief stop people from buying? I don’t think so.

  6. Tony Bellew at 1:54 pm

    Just a point on this Mortgage Interest Relief.
    To claim the maximum relief for your mortgage you have to be buying a House at €625,000.
    So nobody who is currently buying a house is going to be realistically buying a house at that price, because no bank is going to give you a Mortgage for anything close to that.

    Housing Stock – There are only a select few houses on the market that realistically would be a decent purchase. A lot of houses now need to have a lot of work done on them.

  7. michael walsh at 1:41 pm

    I have suitable property in Tralee for renting or selling and I cant get an auctioneer to take it on ,they say it wont sell in current climate.I also have a property in galway a cottage on half acre also told by auctioneer there I would lose a fortune on it im only looking for what I owe the bank on it 165,000.00 and its beautiful with landscape garden and a new granny flat furnished with best of furniture.I just want to give up.

  8. ChiqqiFlores at 1:15 pm

    I am trying to sell at one third of what I paid and have had more viewings because of the mortgage relief. However, because banks are making it hard to borrow I have had buyers who can’t get loans. The relief programme could have had a better impact if banks would lend.

  9. John at 1:03 pm

    I believe lisney have done their homework well.
    Cash buyers are the most active in the market at present.
    There is a dire shortage of the main prize for these buyers- family homes in good areas, close to Dublin city.
    This shortage will only worsen as new buyers enter the market.
    Most of these buyers are targeting exclusively the three bed semi D, and are not going to get involved in the apartment scene, having witnessed the distress of so many who bought so called “starter homes” during the Ponzi style property bubble.

  10. Paddy at 12:44 pm

    I would ask Aoife Brennan of Lisney for an opinion on the weather, on Irish dancing, cars, cooking, even football, in fact anything except the property market because her opinion will always be the same; “now is the time to buy”. Differing justifications will be proposed but the opinion of someone who earns their crust from the sale of real estate is always; “now is the time to buy”.
    Next week we will be getting Dustin the Turkey’s views on Christmas.

  11. Stephen at 12:29 pm

    As a mortgage broker I can say that the imminent end of mortgage interest relief is absolutely having an affect on the current level of activity in the property market. Anyone who was on the fence and has mortgage approval is now looking to go sale agreed.
    In certain parts of Dublin there are plently of properties available, however in other areas people are absolutely struggling to find something or are being out bid. In popular areas of Dublin is is definately noticable that there is a shortage of available properties.

  12. Stephen at 12:19 pm

    Vested internet in making a statement saying the removal of interest relief won’t result in prices dropping shocker.
    Seriously it’d be extremely bad business for them to say prices will drop after MIR goes away no matter what they believe.

  13. Philip Byrne at 12:06 pm

    Shock Horror, estate agency doesn’t think that the ending of mortgage interest relief is having an effect on the current small upturn in the property market.!!!

    What did you expect them to say, yes the ending of mortgage interest relief has brought a panic into the market and forced prices up as people are desperate to buy before it runs out and as soon as it’s over we fully expect the house prices to start falling again as our economy and it’s bleak outlook dictate.

    Seriously what a load of B**@#x of a blog post

  14. Realist at 11:58 am is now beginning to rival the Sunday Indo as a platform for desperate pleas from estate agents that “We’ve reached the bottem…please, please start buying again.”

    Is it seriously being suggested that the imminent ending of mortgage interest relief has had no impact on buying activity in the last few months?

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