It’s a new year, and for many Irish people, buying a new house is top of their list of priorities.
But what can they expect in terms of the market in 2023 and will buying a property be any easier than it was in 2022?
Estate agent Owen Reilly says it will depend on the type of property you’re looking for as each is likely to perform differently. He expects the first-time buyer market to be the most active. “Due to robust demand and limited property supply, I could see properties for first-time buyers, up to €400,000 in Dublin for example, rising by 1pc to 3pc,” he says.
Prices at the upper end of the market, such as a €1.8m-plus property, will depend on supply, which may not last.
Houses in good condition, especially those with a high BER rating, are likely to hold their value as buyers won’t have to factor in the costs of labour and materials. But those in need of refurbishment and those with a low BER rating could fall in value. “There could be a sharp correction, of maybe 5pc to 10pc by the summer, for these properties. Not only have the costs of labour and materials risen, but it’s now more difficult than before to raise finances to refurbish a house.”
Here, we talk to four sets of people hoping to make the big move in 2023. We discover what they’re looking for and how they hope they’ll get there.
Yolanda Liuzzi and Frank Kelly with their children Juliet, Caleb and Seb. Photo: Bryan Meade
‘Buying a home is proving impossible’
Yolanda Liuzzi and her husband, Frank Kelly, are looking for a family home for their three children — Seb (11), Juliet (9) and Caleb (4) — in Blackrock, Foxrock or Stillorgan. They have a €1m budget.
“My husband, Frank, and I have been looking for a house to buy for the last 18 months and it’s proving impossible!
“I’m from Dublin and Frank is from Tullamore, but we’ve been living in a three-bed semi-d in Cabinteely since we got married. We outgrew the house and we couldn’t get our kids into the local school, so we sold it a year-and-a-half ago, thinking we’d buy another home quickly.
“We stayed with my mum at first and then started renting a house in Foxrock and we’ve been there for 14 months. The house is lovely but rent is dead money. At the same time, we’d rather wait and find the right home than rush into buying.
“When I say there’s nothing on the market to suit our needs, I’m telling the truth. We scan myhome.ie all the time and we have all the alerts set.
“One agent, who I rang on a Tuesday, said they’d had such a busy viewing on the previous Saturday that they had four active bidders so I couldn’t even see the house. We’ve lost out on three different houses where people are downsizing and obviously have deeper pockets than us.
“Just weeks ago, we were completely gutted to lose a house. It was absolutely gorgeous and I had bought it in my head. Then, at the very end of the process, two new full cash buyers appeared out of nowhere.
“Ideally, we’d like a four-bedroom, detached home with a garden and space to build an office. I work from home, as I have my own market research company, and Frank is in renewables and works two or three days per week from home.
“We’re looking around the Blackrock, Stillorgan and Foxrock area. We’d live somewhere else but our kids are all in school here and we have family close by.
“It’s not too much to ask. Is it? We very much want to put down roots. If any of your readers want to sell their house to us, please do get in touch.”
Cara Sturgess and Richie Stephens are first-time buyers
‘We’d settle for a house that isn’t perfect because we really want to live in Dublin 15’
Richie Stephens (32) and his girlfriend, Cara Sturgess (31), are first-time buyers looking for a house in Dublin 15. They have a €350,000 budget.
“My girlfriend Cara and I have been renting for years. I work for a video gaming company and Cara is a self-employed jewellery designer. Her business is called Loinnir Jewellery.
“We’ve just kicked off the mortgage application process so we haven’t viewed any properties yet, but we’ve been saving for a long time and have a deposit of €35,000. It hasn’t been easy. We’ve forgone holidays and nights out in a an effort to save.
“Both our families are from Dublin 15 and we rent there at the moment, so it’s where we’d like to buy. We’re considering areas like Hartstown, Huntstown or Clonsilla, as they seem affordable. “Ideally we’d like a house with three bedrooms that would allow us to use one of the rooms as an office so that I could work from home. We’d use the other room for visiting family and friends, though my mother suggested that we rent it out. That could help as it’s going to take all our money to buy the house.
“We’d also like to be able to build a studio for Cara in the garden, so she could work from there.
“We’d settle for a house that isn’t perfect because we want to live in the Dublin 15 area, which is near and family friends and has lots of amenities.
“The fact that you can now borrow up to four times your salary has obviously helped. But the help-to-buy scheme is only for new builds and the price of them is astronomical. It feels as though the €30,000 from the scheme has just been incorporated into the price of a new house and it doesn’t help us at all.
“We’re lucky that we’ve been able to save for a deposit and pay rent at the same time, but many of our friends are less fortunate. Many of them have moved back into their family home to save and some are living with their partners and have babies.
“It was so much easier for our parents’ generation to buy a house. It’s a new, very difficult landscape for this generation. It makes it hard to set up your life.”
Jamie and Nicole Farrell with daughters Sofia and Isabela
‘Our business is construction so we have access to cheaper materials’
Jamie and Nicole Farrell and their three children — Sofia (8), Isabela (6) and 14-month-old Christian — are looking for a four-bed detached house in Clonmore, Co Carlow. They have a €350,000 budget.
“We had been living in the Netherlands since 2015 and moved home to Ireland just before Christmas. My wife, Nicole, is Dutch. We met in 2003 whilst we were both on an Erasmus programme in Rome and have been together ever since. Nicole used to live in Ireland and worked for 10 years for Microsoft. We got married in Sicily in 2011 and then we moved to Holland in 2015.
“We lived in a small town called Reeuwijk. It’s where they make Gouda cheese. In Holland, the houses are typically three storeys and compact. There’s very little space. The cost of living is much the same as in Ireland.
“I was travelling for about seven months of the year, working in professional sport as an agent for athletes, and I wanted a change of lifestyle. So we returned to Ireland to take over a small family construction business called Clonmore Joinery. We supply the construction industry with timber products like doors, door frames, stairs and windows and offer building services.
“I was born in Clonmore and grew up here. Now, I plan to expand the business using my international experience and provide employment in the locality, bringing new life to the area.
“We’re looking for a family home in Clonmore that’s spacious. Preferably a three-storey, four-bedroom, detached house, surrounded by a couple of acres of land.
“We’d like an open-plan kitchen, but we also want to be able to put our own stamp on the house. It helps that our business is construction. It means we have access to cheaper labour and materials.
“You have to be creative when looking for a house here. In recent weeks, I’ve been approaching people in the area about the possibility of buying property that’s off-market.
“We’re hopeful that we’ll get the right house soon. We want our children to get a feel for Ireland and know what it’s like to grow up here.
“It’s an exciting time for us. I’m coming back to my roots and it feels good.”
Paula Stewart is hoping to buy on her own this year
‘It’s much harder to buy a house on your own but this year I’m going for it’
Paula Stewart works for a production company and is a first-time buyer. She’s looking for a property in Kimmage, Crumlin, Kilmainham or Inchicore, Dublin. She has
“I’m originally from Galway, but I live and work for a production company that makes TV commercials in Dublin.
“I first started thinking about buying a house during lockdown and I set about saving. I’m 32 and I’ve been paying rent for years, which represents wasted money.
“Then last year, I applied for mortgage approval. I got it, but I didn’t do anything with it. The market just seemed completely unattainable. I saw friends and family buy in recent years and when I heard about their struggles, it put me off.
“It’s also much harder to buy a house on your own. It hasn’t been difficult to get a mortgage. I’m using Ross Craigie, of Hegarty Financial Management, as a mortgage advisor and he’s been great.
“The tough part is the lack of supply, the competition and the prices.
“This year I’ve got mortgage approval again and now I’m going for it. I’m setting up viewings at the moment.
“I’m considering the areas of Crumlin and Kimmage around where I’m living at the moment.
But I’m also looking at Kilmainham and Inchicore, mainly because they’re in reach for me. Ideally, I’d like to buy a three-bedroom house, but the competition for them is high, so I’d settle for a two-bed.
“The plan is to rent out one or two of the rooms to help with the mortgage. A garden with a shed would be great, but I’m not set on having any particular features, I’d just be happy with a home in the right area.
“I’m keeping in mind that the asking price and the selling price are rarely the same. Sometimes I look at properties advertised for a certain price and then I remind myself that they will probably sell for more. At the same time, I’m trying not to focus on that as it’s disheartening.
“I think the Government should be doing more for young people to help them to get on the property ladder. The biggest problem is supply. Let’s face it, house prices are never going to come down until there are more houses on the market.”
