COVID-19 sees recovering Irish property market ‘suddenly in a time of uncertainty’

WHILE the long-term impact the COVID-19 pandemic will have on the Irish housing market can as yet only be guessed at, new figures have shown house prices in Cork had continued on an upward curve over the first quarter of this year.

Issued on a quarterly basis the Real Estate Alliance (REA) house price survey focusses on the sales of a typical Irish stock home, the three bed-semi, giving a regular upto-date picture of the second hand property market across the country.

According to the latest survey house prices in County Cork increased by 4.5% over the past 12-months, with the average prices as March drew to a close standing at €176,000 compared to €168,500 at the same time a year ago.

According to the report the average house price in Charleville remained static over quarter one of the year at €154,000, with the time to sell rising from six to ten weeks.

Meanwhile, the average threebed semi in Cork City rose in price by 0.8% over the past year to €320,000, but remained unchanged over the past three months, with an average sale time of 12-weeks.

Nationally, the REA reported average house prices had return to growth with a marked increase in activity over the past three month prior to the COVID-19 outbreak.

Between January and March prices rose by 0.14% to €235,028 after an annual decline of 0.63% in 2019.

REA spokesperson Barry McDonald said the latest figures illustrated how confidence had returned to the housing market after months of Brexit uncertainty, with many agents across the country indicating an upturn in viewings and sales since January.

“There is no doubt that we saw a stronger market in Q1 up to the start of the current health crisis, with increased first-time buyer activity and higher transaction levels than in the second half of 2019,” Mr McDonald.

However, he said following the onset of the COVID-19 pandemic had the market was “suddenly in a time of uncertainty and pause button has been pressed on activity.”

While Mr McDonald said that while the fundamental issue of a lack of supply still remained, agents were looking at ways of adapting to the current situation by accelerating the move to virtual viewings and online selling methods as the market adapts to the COVID-19 restrictions.

“We are in a different place than in 2008, and we will benefit from the effects that the Central Bank’s lending restrictions have had on a market that has experienced conservative rather than rapid growth over the past seven years,” said Mr McDonald.

“We also don’t have the huge amount of small-time investors that we saw in the crash as they have left the market in an orderly fashion over the past few years. There is unity in the country, the State and the banks are working together to support homeowners, and buyers will have a lot of time to make decisions in the coming weeks and months,” he added.