Monday 20 November 2017

Foreclosure needed on investment properties to balance the market

Benbulben Co Sligo
Benbulben Co Sligo
Sligo Town. Photo: James Connolly
Mark Keenan

Mark Keenan

SLIGO

Sligo Town, Tobercurry, Inishcrone, Mullaghmore.

Down 5%

One Year Forecast: Down 2%

Average Price: €125,000

Assessing Agent: Bryan J Corcoran.

The Market:

Property sales are reasonably healthy in Sligo Town at the moment – just as long as a vendor isn't looking for more than €125,000.

The new level of activity has generally been concentrated at the lower end of the property spectrum, both in the town and across the county as a whole. Depending on location, investors paying cash have accounted for 50% to 70% of total sales since the start of the year.

Vendors now appear to be more realistic about their expectations. Auctioneers are forecasting that property prices will continue to fall – or at best remain static – at least until the banks have crystallised their losses by foreclosing on investment properties.

"All they're doing is deferring the day of reckoning and until then prices will continue to scrape along the bottom," said Sligo estate agent Bryan J Corcoran.

"We don't have much overhang of properties here – planning was reasonably prudent – but until they sort this out most people will continue to hold off buying or selling."

Typically, prices are 50% higher in Sligo town compared with the rest of the county, which has been decimated by emigration and a trend towards urban living.

Recently, for example, a four-bed house in Tobercurry in the south of the county, sold for €40,000 – €140,000 below its €180,000 value when it was built in 2005.

There are promising signs, however. While the first half of 2013 was dead, there was a notable pick-up in sales activity in the second half around population centres and that trendcontinues.

The Prices:

2-bed apartment:

Jan 2013: €53,000

Jan 2014: €50,000

Jan 2015: €49,000

3-bed terrace:

Jan 2013: €84,000

Jan 2014: €80,000

Jan 2015: €78,000

3-bed semi in town:

Jan 2013: €116,000

Jan 2014: €110,000

Jan 2015: €110,000

4-bed estate house in town:

Jan 2013: €130,000

Jan 2014: €130,000

Jan 2015: €130,000

3-bed bungalow on the outskirts of town:

Jan 2013: €132,000

Jan 2014: €125,000

Jan 2015: €125,000

4-bed bungalow on the outskirts of town on half acre:

Jan 2013: €211,000

Jan 2014: €200,000

Jan 2015: €200,000

4-bed bungalow out of town (half acre):

Jan 2013: €184,000

Jan 2014: €175,000

Jan 2015: €171,000

Holiday home:

Jan 2013: €69,000

Jan 2014: €65,000

Jan 2015: €63,000

Irish Independent

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