Business Property & Mortgages

Wednesday 27 August 2014

Steep drop in number of residential properties for sale

Charlie Weston, Personal Finance Editor

Published 01/04/2014 | 02:30

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Bust and boom: A shortage of houses in the capital is driving the current market

THERE has been a sharp fall in the number of residential properties for sale.

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New figures show that just 33,000 houses and apartments were listed for sale at the end of March. This is down close to 40pc when compared with the same month just two years ago, figures from the property website Daft.ie show.

And there has been a rise in the numbers of people who expect property prices to rise in the next year.

The Daft.ie report shows that list prices – the price sellers are seeking – have risen in Dublin and outside the capital.

Last month, there were 33,000 properties for sale across the State. This compares with 54,000 listed for sale in the same month in 2012, and 43,000 for sale last year.

In Dublin, there was a rise in the number of properties for sale to 9,200 in the year to March.

But Daft.ie economist Ronan Lyons said there was only a fraction of what was needed to satisfy demand. There needs to be around 30,000 listings in a year to meet demand, he added.

Meanwhile, a separate study from MyHome.ie found that asking prices in Dublin increased by 1.3pc in the first three months of 2014.

This is the fourth quarter in a row Dublin has recorded a price increase and puts the average asking price in the capital at €244,000.

Nationally, the average asking price declined by 0.7pc in the first three months of the year – the lowest rate of decline in over six years – to €188,000.

In Dublin, the annual percentage change is up almost 4pc while the national figure is down almost 5pc.

VOLATILITY

Caroline Kelleher from DKM Economic Consultants, the report's author, said the latest figures show significant volatility in asking prices nationwide and across property types.

"The volatility in asking prices is a feature of the transition phase that is currently under way in the market, which is being influenced by fluctuations in stock levels and the changing expectations of sellers.

"Despite this volatility, the figures show the recovery in Dublin continues to gather momentum while it has yet to become firmly established elsewhere," Ms Kelleher said.

Irish Independent

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