Gloomy outlook: 40pc say house prices to fall
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CONSUMERS are becoming more gloomy with four out of 10 expecting house prices to fall further this year, a new survey shows.
The research also shows that fewer people are prepared to invest in property or land now compared with a year ago.
This time last year 49pc of consumers surveyed felt house prices would rise in their area, but one year on about 40pc expect house prices to continue falling over the next year or two.
The survey on attitudes, released by the Irish Banking Federation, also found that only one in 10 consumers expect to buy a house in the next 12 months.
Banking Federation boss Pat Farrell commented: "Some 40pc of people think property prices will fall. Clearly, there has been a swing in people's mood between this year and last."
The survey of 800 adults throughout the country, by Amarach Research, found just 15pc of people between the ages of 25 and 34 intended to buy a home in the next year.
Over-supply
This is against a figure of 52pc in that age group who do not own their home.
Property prices have dropped 10.5pc since their peak at the beginning of 2007, with the property market hit by a fall in confidence, higher mortgage interest rates and an over-supply of housing.
Despite the negative views about the direction of the property market, home ownership levels remain high.
More than two thirds of people either own or part-own their home, with many of these people seeing the family residence as an investment.
The majority of respondents to the survey -- 54pc -- said their home was their prime investment. And just under half (49pc) of those questioned said they had carried out renovations on their home in the last five years.
About a quarter of the people surveyed had bought their homes between 2000 and 2005.
Investment
The survey also revealed that only 11pc of people own another property in Ireland besides their home..
Property is still seen as an investment, but less so than a year ago.
More than one third of those planning to buy a property in the next year saw property as an investment which would safeguard their future.
Some 11pc of those surveyed considered property the safest investment, while one in 10 said a property was a source of income in retirement.
Another 10pc did not want to be left behind if house prices began to rise again.
See Your Money on pages 34-37
- Charlie Weston Personal Finance Editor
