KBC Bank last week released their latest Homebuyer Survey - a nationally representative online survey of 2,000 people carried out on behalf of KBC Bank by Core Research.
The survey finds that 53% of those surveyed are now planning to buy because of changes in personal circumstances (e.g. stage in life, family size) while 17% cite expected increases in property prices are key driver of purchase plans.
Not surprisingly, 16% say that cheaper cost of buying compared to renting as the main factor while more than half (60%) think that it is harder to find a suitable home than a year ago.
The survey reveals that most homebuyers are willing to compromise about the type (58%), size (62%) and location (61%) of the house that they buy.
Over two-thirds (70%) believe property prices will be higher in three years’ time but 30% think falls are likely. Most see modest increases with property values seen about 10% higher in three years. Most see modest increases with property values seen about 10% higher in three years.
The survey, which is published twice a year, suggests that a range of personal factors rather than the strong Irish economy are driving very strong homebuyer demand. First-time buyers are still the most important market segment (47%), but an increasing number of people are now planning to move (36%), with 17% of those surveyed planning to purchase an investment property.
The demand for housing means that there is a growing emphasis on finding somewhere to ‘put down roots’, with only one in seven people surveyed considering another move within the next five years. Almost half (41%) of buyers expect to live in the property they purchase for more than 20 years.
Commenting on the data, Chief Economist KBC Bank Ireland, Austin Hughes said, "With a housing supply deficit, and some 85,000 prospective homebuyers in a position to buy immediately, there is an effective backlog of unsatisfied demand equivalent to about a year and a half worth of transactions at present, indicating that for most homebuyers, the process of buying a new home is endured rather than enjoyed."
Source: www.businessworld.ie
