The peak of the market now looms as prices soar beyond the family to achieve

  • The peak of the market now looms as prices soar beyond the family to achieve
    Independent.t. E.
    The pace of the growing market of real estate will be weakened, and prices have now hit the very outer edges of what a family can pay, experts predict.
    https://www.independent.ie/business/personal-finance/property-mortgages/peak-of-the-market-now-looms-as-prices-soar-beyond-families-reach-37240088.html
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The pace of the growing market of real estate will be weakened, and prices have now hit the very outer edges of what a family can pay, experts predict.

Customers are now limited to what they can bet in connection with the Central Bank credit limit – while prices have risen so much that now more and more unattainable.

The latest official figures show property prices rose by 12pc in the past year.

However, most industry experts now expect the growth of prices by 5pc over the next few months, according to a survey conducted by the Central Bank and the society of chartered surveyors Ireland.

The survey polled real estate agents, economists, scientists and surveyors.

The limits of Central Bank lending are cited as the reasons for the growth in prices slowed down, with some evidence of an increase supply of properties for sale.

The lower expectations of price growth is particularly evident in Dublin, where one-year expectations have fallen to just 2pc.

Slightly more than half of the experts expect to see price growth in the capital, compared with the vast 98pc in the last year.

According to the report: “the availability of Bank credit is a main factor of the expected price changes at both national and Dublin.” Also mentions other issues, including the level of interest rates and the perception of value.

It radically changes the results of the previous surveys, where the lack of supply was cited as the main factor influencing changes in housing prices.

One of those who participated in the survey, economist Dermot O’leary of Goodbody Stockbrokers said that the market is under the impact of the mortgage rules the Central Bank.

He said that some banks refuse to accept mortgage applications from borrowers looking for exceptions to the rules of the Central mortgage Bank “credit value” and a credit to income.

“This is consistent with the slowdown in mortgage lending over the past few months,” Mr. O’leary said.

The median, or middle, value of real estate in the country rose to €27,000 a year in June compared with the same month last year. The average price paid by households this year at home is €237,000.

And 5pcs price increase will add around €12,000, the price of properties across the country. That would take average prices to almost €249,000 at the national level.

If prices in Dublin to rise by 2pc this will mean that the average price will be from €360,000 € 367,000 to the end of the year.

Meanwhile, new data show that 4,419 of new homes were built in the period from April to June, according to the Central statistical office.

This means an annual growth of 34pc.

It will take a year, but only up to 7,945.

In the center of the city still accounts for the lion’s share of the construction of new homes.

Ireland Leo Varadkar said: “I am delighted that in the last three months 4 400 new houses were completed in Ireland. This 34pc increase on the same period last year.

“I think it puts us in a good position to achieve our goal of construction this year 20,000 new houses in Ireland.

“We have a housing crisis in Ireland. The ultimate goal is to build new houses and homes.

“It’s going to take time, but we’re getting there.”

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