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Monday 26 June 2017

Q2 Average House Prices 2017

The price of an average house in Dublin rose by 2.6% in the second quarter of this year with three-bed semis in the capital now taking as little as three weeks to sell.
The average three-bed semi-detached in Dublin city now costs €414,500, a rise of €10,000 (2.6%) over the last three months and an increase of 14.1% over the past year, the Q2 REA Average House Price Index has found.
And REA agents in areas of south Dublin such as Tallaght, Clonskeagh and Dun Laoghaire are reporting that properties which took seven weeks to sell a year ago, are now moving to sale agreed in 21 days.
The REA Average House Price Survey concentrates on the actual sale price of Ireland's typical stock home, the three-bed semi, giving an up-to-date picture of the property market in towns and cities countrywide.
The average semi-detached house nationally now costs €215,269, the Q2 REA Average House Price Survey has found – a rise of 2.5% on the Q1 figure of €209,944.
Overall, the average house price across the country has risen by 11.2% over the past 12 months – in contrast to the 4.5% increase registered to the full year to June 2016.
While new building is still in its infancy, new developments on sale in small pockets of the country have had an impact on the price and demand for second-hand properties locally.

Agents have been reporting that where there are new homes available, the price of second-hand properties has been under pressure,” said REA spokesperson Healy Hynes.

“Most of our national housing stock is over a decade old, and house purchasers – especially first-time buyers – will opt for new builds at a higher spec, even if there is a marked difference in price.  

“Our agents are also reporting that both purchasers and three-bed semi vendors are looking for larger homes, which is having an adverse effect on the supply chain, with the result that time taken to sell is now four weeks on average in Dublin and the major cities, and as low as three in some parts of the capital.

The commuter counties Louth, Meath, Kildare, Wicklow, Carlow and Laois continued to rebound after a relatively static end to 2016 and saw an increase of 2.6% in the quarter, with the average house now selling for €223,267.

Prices in the major cities of Cork, Galway, Limerick and Waterford rose by 1.9% in Q2 and 9% on the year, the survey found.

The average three-bed semi now costs €311,000 in Cork (+2%), €245,000 in Galway (+2.1%) and €185,000 in Limerick (+3.9%) and Waterford €190,000 (0%) with first-time buyers opting for new homes as the reason for static pricing in the latter location.

The biggest percentage increases over the past three months came in the country’s smaller rural towns situated outside of Dublin, the commuter belt and the major cities.
Prices here rose by an average of 2.8% over the quarter, with a three-bed semi now costing €138,183 on average – a rise of 12.3% over the past year.

However, uncertainty over Brexit has resulted in a significant downturn in turnover for agents in some border areas.

Prices for three bed semis have remained at €85,000 in South Donegal for the past three quarters, but this masks a huge drop off in business from the North according to REA McElhinney in Bundoran.

“There is an overall hit to confidence and to people’s willingness to make a major financial commitment to property while there is uncertainty over the border,” said Michael McElhinney

Ends

Available for interview:
Healy Hynes, REA spokesperson and auctioneer
healy@hynes.ie 087 263 2295
Media information: Darren Hughes, 086 293 7037, Darren@mediaconsult.ie



Tuesday 6 June 2017

REA Rental Report (Dublin)

95% of renters in the Dublin area aspire to own their own home, a survey of over 300 tenants in the capital has revealed.

However, 37% of the 300 respondents do not see their ambition being achieved within the next five years, according to the survey carried out by Real Estate Alliance for the Irish Independent.

Only 15% of renters in the capital are actively planning a property purchase in the next year with a further 18% stating that they envisage buying within two years.

48% of tenants cite a lack of funds for a deposit as the main reason why they cannot buy a home, with 29% identifying low earnings as the prime reason.

34% of renters say that the most important factor preventing home purchase is a combination of deposit restrictions, lack of earnings and negative equity.

The attraction of a rent to buy scheme to aid house purchasing was brought into sharp focus when an overwhelming 81% of respondents said they would move into their ideal home today, within a commutable distance of Dublin, if they could rent it for a few years before buying.

Rental certainty over a five-year period was the most important factor in making such a scheme work, with 81% of people being prepared to pay a deposit to secure the right to buy after five years.

However, only 32% of current renters said that they could afford a deposit of over €5,000 for such a purpose.

“This survey is a resounding statement that long-term rental is not what people want,” said REA spokesperson Healy Hynes.

"Much has been made in the population figures of a shift from home ownership to rental. However, this is a response to the housing supply issue rather than a lifestyle decision.

“Despite a demographic change towards families renting, it is clear that it is not their desired long-term solution.

“The fact that 37% of renters feel that they will not own a home within five years shows how the odds are stacked against them in the current climate where it is cheaper to pay a mortgage than to rent.

“A person looking to buy a house at €250,000 must raise a deposit of at least €25,000, leaving them with a mortgage of €225,000, at average monthly repayments of €1,000.

"This repayment is about €500 cheaper than the average rent being paid by our respondents, meaning that they could save €6,000 per year by purchasing a house.

“However, the survey shows that the average renter can only raise a €5,000 deposit at most, and has few options left to raise the lump sum required or meet the income level requirements under current legislation.

“The survey also clearly shows an appetite for rent-to-buy schemes which would help to ease the path into home ownership.”

Renting is increasingly the choice of couples with 57% of all renters in the capital either married (14%) or living with a partner (43%), with 43% single and 22% of renters having children.

The survey showed the majority of respondents living in South Dublin (35%) and the city centre (29%), indicating that people may be renting where they want to eventually live, but are hamstrung by house prices and lending restrictions.

52% of Dublin renters are paying over €1,300 per month for their property, with 27% in the band between €1,300 and €1,500 and a further 14% paying between €1,500 and €1,750.

Over two thirds of Dublin rental households earn more than €40,000 with over a third (36%) earning over €60,000 - an income that would previously have gained the holder entrance into the housing market at some level.

Transport, amenities, parking, security and securing a new property all figured low on the priorities of Dublin’s renters, with location (43%) and price (40%) being the main drivers when choosing a property to rent.

91% of the respondents are between the ages of 25-44, with just 4% of renters under 25.

Tenants rate the ability to move again if their circumstances change and the fact that they are not responsible for maintenance as the two greatest attractions about renting.

However, one third (33%) feel that rent is wasted money with 32% feeling that they are missing out on owning their own home as property prices keep rising.


Ends

Monday 5 June 2017

Rental Survey revealed in the Indo

The true extent of how Ireland's rental trap has snared aspiring homeowners is revealed today as just 15pc of current renters believe they can acquire a home within the next year.
More than a third now believe it will be more than five years before they can manage to get on the property ladder.
This is even despite the fact that almost all renters are determined to get out of rental accommodation and to own their own home eventually (95pc), with just 5pc resigned to remaining in rental forever.

However, less than one third of current renters said that they could afford a deposit of more than €5,000. This compares with a deposit on an average new home in the capital which currently stands at €30,000 or higher.
The rental survey published today was commissioned by the Irish Independent through the Real Estate Alliance (REA) and taken from the opinions of more than 300 people currently renting in Dublin.

It shows that many are stuck unwillingly in rental accommodation even despite earning high salaries - more than a third of current renters are earning in excess of €60,000 per annum.
Renting is increasingly the lot of couples, with 57pc of all renters in the capital either married or living with a partner.
Renting is increasingly the lot of couples, with 57pc of all renters in the capital either married or living with a partner. Stock image
Two thirds (66.3pc) are earning more than €40,000, an income that in previous times would have got them on the housing ladder. However, in a 'Catch 22' situation, their saving abilities are being hampered by soaring rents.

Read More: A 'Rent to Buy' scheme could be a happy halfway house and give families security
More than half are now shelling out more than €1,300 per month in rent, with 27pc in the band between €1,300 and €1,500 and a further 14pc paying between €1,500 and €1,750.

And in a break with the Irish tradition of starting a family in the first-bought home, it emerges that 22.5pc of renters already have children.
Renting is increasingly the lot of couples, with 57pc of all renters in the capital either married or living with a partner.

Deposits are seen as the biggest obstacle, with almost half (48pc) citing the lack of funds for a deposit as a key barrier. After deposits, 29pc cite their earnings falling short as the main reason.
And an indicator of a possible solution to their woes might come in the form of a 'rent to buy' scheme, with an overwhelming 81pc of renters saying they would move into their ideal home today, within a commutable distance of Dublin, if they could rent the property for a few years before buying.

Rental certainty over a five-year period was the most important factor in making such a scheme work, with most people being prepared to pay a deposit to secure the right to buy after five years.
"This survey is a resounding statement that long-term rental is not what people want," said REA spokesperson Healy Hynes (right).

"Despite a demographic change towards families renting, it is clear it is not their desired long-term solution. Much has been made in the population figures of a shift from home ownership to rental. However, this is a response to the housing supply issue rather than a lifestyle decision," he said. "The fact that 37pc of renters feel they will not own a home within five years shows how the odds are stacked against them in the current climate where it is cheaper to pay a mortgage than to rent."
A person looking to buy a house at €250,000 (among the very cheapest in Dublin) must raise a deposit of at least €25,000, leaving them with a mortgage of €225,000 and average monthly repayments of €1,000.

However, this repayment is about €500 cheaper than the average rent being paid by the survey's respondents, meaning that they could save €6,000 per year by purchasing a house.

The majority of respondents are living in South Dublin (35pc) and the city centre (29pc), indicating that people may be renting where they want to eventually live, but are hamstrung by house prices and lending restrictions.
What was traditionally a large core of renters of student age is evaporating fast as those under 25 cannot afford to rent at all. The largest age group was in the 25 to 35 bracket (68pc) while there are also indications that the renting population is aging as more people remain priced out - 28pc are now 35 or older.

Tenants rate the ability to move again if their circumstances change and the fact that they are not responsible for maintenance as the two greatest attractions about renting.

However, one third feel that rent is wasted money.