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Increasing number of Irish people believe house prices have reached tipping point

Written by Robert McHugh, on 26th Aug 2019. Posted in Property

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A new property consumer sentiment survey has found that there has been a significant shift in consumer sentiment regarding house prices in the last year, with nearly twice the number of people believing prices will fall over the next 12 months.

The survey, from property website MyHome.ie, suggests an increasing number of people believe house prices have reached a tipping point, with 30% expecting prices will stay static, while 26% believe they will fall. This is in contrast to last year’s figures, which saw 20% of respondents believing prices would stall and 15% saying they predicted a fall in the year ahead.

The survey of 2,200 people also found that 30% believe prices will rise by up to 5% (down from 42% of respondents last year), while 13% believe they will rise by 5% or more (down from 22% of respondents last year).

Forty-three per cent of those surveyed said they expected to buy a new home in the next 12 months (a marginal increase from 40% last year), with 30% saying they were undecided and 27% saying they did not plan to buy.

When asked what factors would influence participation in the housing market, half of respondents said more stock on the market, with the same number name-checking the availability of mortgage finance. Forty-two per cent said confidence in the overall economy would influence participation, while 39% said lowering the deposit required to buy a home would make a difference.

Commenting on the research, Managing Director of MyHome.ie, Angela Keegan said, "We have seen a significant change in opinion on house prices, but environmental concerns are also weighing heavily on people’s minds, with 92% stressing the importance of BERs when buying a house and three-quarters saying they would consider retro-fitting a property to increase its energy rating."

She added, "Concern over housing supply is still apparent, which is reflected in people’s thoughts on changes to our housing regulations, with over half of respondents in favour of increasing building heights in cities."

Source: www.businessworld.ie

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