Sales pick up pace
THE gap between the price hopes of house sellers and buyers has narrowed and as a result buyers and sellers are more quickly entering into negotiations. Consequently it is taking less time to sell family houses in the €300,000 to €800,000 price bracket and a shortage is beginning to emerge.
This is the view of Peter Stapleton, managing director of Lisney. He remarked on how the selling process has changed since the days of the property boom.
"In those days agents were criticised for quoting low guide prices and agents were outbid by the market. Then, after the market turned, agents were ahead of vendors when advising them how much prices had fallen. Houses which were priced in the €600,000 to €1.6m. bracket are now selling for €300,000 to €800,000.
"During the boom, auction properties could go through the whole process from launch to contract signing within four weeks. Then for most of last year properties were on the market for months and most were not selling at all.
"Then, since November, sales activity picked up and the time it takes to market a property from the launch to the sale agreed is about six to eight weeks with a further four weeks to get contracts signed," he explains.
However, one of the difficulties in markets such as Dublin's southside is that planning officials want high-density apartment developments and this is curtailing developers looking to respond to demand for houses by building them on sites earmarked for apartments. New apartment developments are unlikely to start for years, but curtailing supply of new houses in key areas could serve to underpin the price of houses.