Yikes.

Struggling house hunters are facing yet another squeeze in the next twelve months.

According to a new report, which compiled information from more than 200 estate agents belonging to the Society of Chartered Surveyors Ireland (SCSI), estate agents expect another 7% increase in house prices over the coming year, thanks to a lack of housing supply.

The SCSI Residential Property Market Monitor July 2021 shows that 84% of agents report having low levels of stock available to sell on their portfolios at present.

With prospective sellers reluctant to put their property on the market, buyers are left chasing a reducing number of properties.

“A large number of approved bidders are going head-to-head with one another to secure scarce housing stock, and further driving up prices,” explains Majella Galvin, DNG Galvin Auctioneers.

“Many house sales in the Cork residential market have gone for 10% or more over their guide prices, while coastal properties have increased by over 20%. While it’s a sellers’ market right now, the rate of price increases we are seeing currently is not sustainable in the long term.”

Ms. Galvin, Vice-Chairperson of the SCSI (Southern region), said the cumulative impact of the slowdown on new home construction from the repeated shutdowns of the sector “will be with us until 2023 at least”, with increases in the price of steel, timber, plastic and insulation products also contributing to higher prices for new homes.

Buyers leaving Dublin for Cork

“Buyer’s preferences for homes have changed in the last 18 months. Location is no longer the key requirement. As a consequence, we continue to see more demand for property in rural areas with large gardens and good broadband.” adds Galvin.

“We are seeing buyers from Dublin looking to relocate to Cork as flexible working conditions continue to be the norm and they can get better value for money. The increase in Irish interest in West Cork properties, coupled with the drop off in overseas purchases, has changed the market significantly.”