Number of homes for sale nationwide hits a new low
The housing crisis has worsened with news that the stock of homes for sale nationwide has reached its lowest level since records began in 2009, the Irish Independent can reveal.
There are just 26,773 properties currently for sale nationwide compared with January 2010 when there were twice as many homes on offer (54,121).
The figure means that just 1.4pc of Ireland's private housing stock is available for sale nationwide. This compares with about 6pc in the UK and it is generally accepted that 3.5pc or more is necessary for a normally functioning property market.
Lack of supply and construction has been blamed for rising rents and property prices and growing homelessness.
In Dublin the stock of supply for sale currently stands at 4,115 homes for sale - only January 2014's figures have been lower (3,025). Overall the amount of property for sale has fallen by 13pc on this time last year representing less than 1pc (0.8pc) of the private housing stock.
The study of property supply to market has been released by the research department of Sherry FitzGerald.
Marian Finnegan, chief economist, Sherry FitzGerald Group said: "The stock of available properties for sale has fallen considerably in recent years and is now critically low in all our regional centres. Such low stock will inevitably put upward pressure on prices.
"The combination of the low quantity of property to buy and to rent in Ireland is direct evidence of a market in crisis. If we are to prevent this housing crisis deepening, there is an immediate urgency for the new government to ensure a significant uplift in construction activity in all our cities."
Supply has also fallen significantly in the other regional centres in recent years. The cities of Cork and Galway are experiencing an even worse situation with just 0.7pc of their entire private housing stock on the market.
This amounts to 350 units in Cork and 220 units in Galway. Limerick city had only 1pc of its private stock or 240 units advertised for sale.
The situation is even worse when it is considered that the agency believes around 50pc of stock currently on offer is through "forced" sales - with banks applying pressure or selling directly.