House prices decreased by 0.6% in August.
According to the latest Residential Property Price Index released by the Central Statistics Office (CSO) today, the lockdown and subsequent restrictions on movement due to Covid-19 resulted in 22% fewer property transactions than in July, and 41% fewer than in August 2019.
It’s not the sharp drop that many were expecting and prices are expected to remain relatively steady for the rest of 2020. For Cork homeowners, it’s better news still; Joey Sheahan, Head of Credit at MyMortgages.ie believes Cork’s market has shown more resilience than other areas of the country.
“The demand in the South West is sound – and growing,” he said.
“Differences in the average price of property can, of course, be seen across the city and county – €344,999 in Kinsale, €317,500 Carrigaline, €290,000 in Cork Southside, €239,750 in Cork Northside. But we are seeing demand in all areas of the city and county – mortgage applications and subsequent approvals are strong across the board.
“Overall today’s property price figures speak to a robust property market. And yesterday’s Budget announcement will only serve to strengthen it.”
Certainty for first-time buyers
Mr Sheahan believes the extension of the Help to Buy (HTB) Scheme will generate even more activity in the market in the months ahead.
“The announcement also brings a degree of certainty that was lacking the market – would be first-time-buyers were unsure as to whether they would or could make the December deadline.” Mr Sheahan added.
“The salaries of many first time buyers are increasing year on year, so where last year they may have only qualified for €20,000 under HTB scheme, many more could now secure the maximum €30,000 in January 2021, due to the fact that they can include their income for 2020 in the calculation.”