A new survey shows that prospective Irish homebuyers are still confident about their ability to buy despite the ongoing effect of Covid-19 to the economy.
The survey of 2,716 people from property website MyHome.ie suggests that 71% of prospective buyers are still planning on buying a new home in the next year. This compares with 68% of prospective buyers who were surveyed last May.
However, consumer opinion regarding home prices has changed since the summer. Now, just 13% of survey respondents believe property prices will fall by over 10% in the next year, whereas last May 37% of consumers predicted that outcome.
Four in ten consumers now believe that prices will fall by up to 10% in the next year, while half of all respondents believe next year will represent a good time to buy a home.
The virus is expected to have significant long-term effects, with 61% of respondents believing it will lead to more online processes in general to minimise unnecessary contact. Meanwhile, 23% believe it will lead to quicker sales processes in general.
Commenting on the figures, Managing Director of MyHome.ie, Angela Keegan said, "Even though consumers have not seen the price drops that many predicted when Covid-19 emerged, demand has stayed strong throughout Q2 and Q3. It appears that many prospective buyers have not been hit by the economic fallout from Covid-19. MyHome.ie had its busiest ever month for website traffic last July, and this is reflected in the fact that seven out of ten respondents are planning on purchasing a property in the next year."
She added, "Our analysis shows that stock levels are down by 22% year-on-year, which is concerning. A healthy, functioning property market needs a good balance of supply and demand, and as such we need to see construction continue unimpeded over the winter if at all possible."