Almost 80% of people believe house prices will continue to rise over the coming year according to a new buyer sentiment survey from MyHome.ie in association with permanent tsb bank.
The survey was commissioned to coincide with the permanent tsb Ideal Homes Exhibition which takes place this weekend in the RDS in Dublin.
9% of those surveyed said they expected prices to remain static while 13% believe prices will fall.
33% of those surveyed said they hoped to purchase a property in the next 12 months according to the survey.
Angela Keegan MD of MyHome.ie said the findings relating to future prices reflected a dramatic change in outlook over the last 18 months.
“Last May almost two thirds of people believed prices would remain the same. Exactly a year ago 57% believed property prices were rising or stabilizing. Now almost 80% believe they will rise. While this turnaround is partly attributable to a rise in consumer confidence the lack of supply has also played a significant if not decisive role, especially in Dublin and other urban areas.
“We saw further evidence of the extent of price increases in the CSO figures published earlier this week and clearly the trend of rising prices is also fuelling future expectations.”
The Head of Mortgages with permanent tsb bank, Richard Kelly said the survey found that 38% of those planning to buy in the next 12 months would do so before the end of the year and it also found that more than half of those surveyed said they had the required funds to pay a deposit on a house. ‘At permanent tsb our qualified advisors can offer advice to both first time buyers and families planning to either move or improve their homes. We aim to help customers get a better understanding of the mortgage process and on how best to fund their home project.’
The impact which the lack of housing stock is having on the residential housing market was also highlighted. Over half of those surveyed who were looking to move were put off from doing so by the lack of suitable housing stock while almost a third said they were unable to move because of negative equity.
Second hand homes were the preference for 72% of those surveyed while the garden was deemed the most important feature in a home for 61% of respondents, followed by off street parking at 22%.
A good public transport network was the most important amenity people wanted near their home closely followed by shopping areas and proximity to schools and crèches.