Roscommon: Second-hand market is strong
With supply tight in Roscommon, the investor and the owner-occupier are now finding themselves vying for the same properties. The former's bread and butter comprises homes in need of improvement and the latter likes them ready to walk into, but the shortage means owner-occupiers are having to make do.
David Diffley of Property Partners Earley has seen an increase in the people with mortgage approval and says there are also more cash buyers about. It's all a recipe for inflation.
"People who spent years in negative equity are finally coming out of it and are happy to move on. The second-hand market in the town is very strong, with houses selling in four to five weeks, provided they are priced right," says Diffley.
There is a new development in Roscommon town at the moment but tellingly all units have been pre-sold. "Oldwood is a scheme of 50 A-rated three-bed semis which were selling for €176,000. They are hoping to introduce three-bed bungalows to the development this year which will result in 62 units in total. Interest has been very strong and anything that was available is already gone," says Diffley.
There is also a small stock of rural properties that sell at a steadier pace, but if they're close enough to any of the main towns, there is always a buyer, says Diffley.
There was a small fall-off in sales in the county after the Brexit vote but Diffley said there are still UK based buyers looking for a second property in Roscommon because prices are so low. "You can get a country property needing a bit of renovation for between €50,000-€100,000. We're seeing more cash buyers snapping up this kind of home."
Prices are up in Roscommon by 8pc. The biggest increases are taking place with apartments, and two-beds are up by 19pc. But even so, that leaves them priced at just €48,000. Diffley believes there is still a lot of movement in the market so is predicting an increase of 12pc for this year. Some house types are expected to do much better than others, with holiday homes predicted to increase in value by 14pc, while four-bed houses in estates may only go up by 8pc.