Thursday, August 22 11:22:00
Further evidence that the property crash has bottomed out emerged today with the number of dwellings listed for sale and the number of actual sales both rising.
The IBF Housing Market Monitor Q2 2013, published today by the Irish Banking Federation (IBF), also shows that the level of mortgage approvals and drawdowns also rose.
However, it also throws up significant regional variations.
Drawing on various published data on the residential housing market to provide a composite analysis on where the market may be going, the IBF Housing Market Monitor shows that, in Q2 2013 compared to the same period in the previous year, there was a 3.3pc increase in the number of properties listed for sale.
It also shows an 8pc increase in the number of housing market transactions and a 9.7pc increase in the level of mortgage approvals and a smaller 0.7pc in the level of drawdowns.
In his commentary accompanying the IBF Housing Market Monitor, ESRI Economist, David Duffy, believes that the stabilisation of the housing market is in keeping with the evidence emerging of a slow improvement in the economic outlook for Ireland.
More so than other regions, Dublin and Leinster remain key drivers behind these trends - with improving activity levels primarily reflecting a more positive Dublin market. Dublin also contributes to the volatile trend in the number of new commencements.
"At some point a more positive view of the outlook for the market, reflected in people's price expectations, will translate into increasing demand for homeownership.....House price expectations will play a key role in determining the outlook for the housing market. List prices from the daft.ie database may provide some evidence that expectations may be beginning to change - this is particularly evident in Dublin," said Mr Duffy.
"Having weakened in Q1 2013, as activity slowed following a surge at the end of 2012 due to the ending of mortgage interest relief, mortgage approvals and drawdowns both recovered in the second quarter. Mortgage approvals rose by an annual rate of 10pc while drawdowns increased by a more moderate 1pc." "The stabilisation of the housing market is in keeping with the evidence emerging of a slow improvement in the economic outlook for Ireland. Although uncertainty remains about the international economic outlook, an increasing number of economic indicators are showing improvement rather than continued decline. Many of these relate to factors that underpin the housing market."