Lack of housing stock a major issue around Wexford

WHILE the Wexford property market is improving the lack of housing stock is Wexford town and county is making it increasingly difficult for first time buyers to get their foot on the property ladder.

Robert McCormack of REA McCormack Corish said prices are steady but supply is a problem for buyers.

‘Stock has been low since January although it has freed up a bit in the last few weeks. The weather hasn’t helped either and the market hasn’t kicked off yet this year the way it did in 2017. Overall though prices are steady and stable. However stock being low is our biggest challenge.

‘ There’s plenty of first time buyers out there up to the €150,000 threshold but as you go over that it’s more difficult for them because of the lack of mortgage availability in that price bracket. While banks are lending the rules are not as free as they used to be and it can be difficult to get money from them unless you check all the criteria.

‘ They are always welcome though as they are a good market drivers.’

Commercially Robert said that again stock is the main concern.

‘ Things on the commercial front are slow and steady, much the same as last year. Stock is low and there hasn’t been a huge amount coming to the market this year s

JOHN Kearney of Kearney Property also said demand is outstripping supply across the board.

‘Stock is a major issue. Like everyone else in the business we are looking to get more and more houses on our books to cope with demand. I don’t know if people are holding out thinking that prices are going to rise but there’s a limit to that because people can’t get mortgages. With the new restrictions you can only get three and a half times your salary so certainly for first time buyers it can be a struggle.

‘I’ve noticed that we are selling more and more new builds. We’ve sold around 50 to 60 new houses in the last 12 months but young couples are struggling to get mortgages with the help to buy scheme. I’ve noticed that people are availing of the help to buy scheme down here in Wexford and it is a bonus for buyers so certainly in that respect it was a sensible move by the Government.

‘Going forward all the new houses on our books are gone and the next phase of these developments won’t be available until later this year. We’ve already a list of people expressing interest in these houses so people are conscious of the lack of stock.

‘New builds are very attractive to buyers at the moment too. People are very impressed with the A energy rating and the fact that it is efficient and warm.’

In terms of second hand homes John said that the condition of the home is key to a sale.

‘One off big houses which are presented beautifully will sell but the average big house which seemed like a good idea in the boom but isn’t being presented to the best of its potential is struggling to sell.

‘For anything over €300,000 people are expecting to get something immaculate. Nobody wants a project at that level.

‘ There is still a market for a doer-upper and amazingly there are some out there but people want them at knock-down prices because they have work to do on them.

‘Overall things are ticking over and I would be very optimistic as the economic signs are excellent.;

Supply is also a major problem for lettings according to John.

‘In terms of letting there is nothing out there. Obviously rents have gone up extraordinarily and the problem is there is nothing out there for people wanting to rent. For landlords with an investment property the best thing they can do is ensure it is managed properly which is what we do.

‘People are realising that they have to look after a house, both landlords and tenants, but stock is in very, very short supply.’

Gary Quinn of DNG Property People also believes the biggest problem facing buyers is stock.

‘In general the market is still improving price wise but stock is generally quite low. The amount of stock out there is one of the biggest obstacles facing buyers. We are starting to see some new developments coming on stream and there will be more over the next 12 to 24 months because we are seeing more planning activity. But these new developments are priced at €200,000 plus for a three bed semi so the fear is there that the banks won’t give mortgages.

‘It’s a good start to the year in general though both in country and urban areas. There is a good demand for three bed semis both for investors and first time buyers but the average first time buyer in Wexford is struggling to come up with €200,000 unless they have a lot of savings. Under the new council mortgages there seems to be a bit more flexibility but it’s early days at the moment and we don’t know how much money each local authority will get.

Bernadette Denby of Bernadette Denby Auctioneers said buyers are finding it very difficult to find a house in their price range at the moment.

‘ The biggest issue currently is the lack of stock for people. It is getting very hard for buyers to find a house in their price region now that we are finally seeing banks lending again. However for the majority of first time buyers new builds are out of their price range because to make such developments affordable for developers they are generally priced that bit higher. So they often look to second hand homes unless they have a lot of savings for a deposit.

‘New builds tend to be priced at €200,000 or over to make them affordable for developers but the average Wexford salary gets a mortgage of about €175,000 so there is a gap there.’

Bernadette said she isn’t seeing a lot of downsizing at the moment.

‘I haven’t seen an enormous amount of people downsizing because I think they are still not happy with the price. Obviously prices have increased but a lot of people are still in negative equity so there is a choke there in terms of the release of property.

‘However going forward you have to be optimistic. Things are a lot better than they were. There is activity out there and hopefully vendors will be more confident in putting properties on the market.

‘If the supply comes in things will continue to improve for buyers. The property market is never the way everyone wants it to be. There is always too much or too little supply. For some people things work to their benefit at a particular time while for others it doesn’t.

‘Hopefully things will stay steady and people will put more properties up fro sale. A lot of people out there want to upgrade or downsize but feel the market isn’t right at the minute for whatever reason’, said Bernadette.