Tipperary North: Flurry of sales lead to lack of stock
The turnover of houses in Tipperary North is running at a much stronger rate than a year ago with prices climbing by 10pc in the last 12 months. However the flurry of sales is beginning to lead to an issue with supply.
"Lack of supply of good-quality houses has been the biggest problem for the market in Tipperary North in recent months," says Nenagh-based agent Eoin Dillon. "The issue now is that prices haven't increased enough for builders to move back in so lack of supply will have an impact on the market in the year ahead."
The supply-demand factor seems to be more of a headache within bigger towns than further out. Dillon has noticed that anything in the town sells very quickly but once you go five or 10 kilometres out, it's hard enough to shift the property.
The shortage of properties for sale is then having a knock-on affect on the rental market in the area. "Most investor properties that are coming up for sale are now being bought by owner-occupiers. There is huge demand for rental properties because they are becoming so scarce," says Dillon. "We are renting available homes within hours. We are not even advertising them anymore because we have such a long list that we can just match people off when something comes to the market."
The first-time buyer market in Tipperary North was quiet in 2015, with most sales coming from people trading up. The new Central Bank lending restrictions that require a 20pc deposit for properties over €220,000, didn't affect the market too much in the area because most homes were still coming in under the threshold.
Going into 2017, Dillon reckons that prices will continue to increase but at a slightly more moderate level than last year - closer to 8pc.