Good time for investors looking to get out

 Property Industry Ireland, or PII, in conjunction with AIB and DKM Economic Consultants published their quarterly publication Property Watch last week. This report not only brings together key statistics from across the industry, it also follows recent past  trends to allow for more accurate future forecasting. 

One of the more interesting figures to emerge from this report is the prevailing low level of housing commencements.  Despite government prompting and greater funding availability, slightly in excess of 2,000 housing unit builds started in the first quarter of 2016.  Of those 2,000, 38% were one-off builds.   This number falls short of the total level of house building forecast for the year, which is 11,000.  Even if these 11,000 homes are delivered in 2016, it is still hugely below the 30,000 that is needed annually for the next few years.  It is not good news for home buyers and for residential investors (unless they are willing to take on 'project ' properties or refurbishment jobs).

So what does all this mean for sellers?  Actually, it is good news for sellers who will face less competition for their home when trying to attract a buyer.  Of course, this is true only if the seller is not trying to find a new home to trade up or down to.  For investors who are looking to offload some investment properties, there really has not been a better time in recent years to bring units to the market.  While demand does not appear to be growing, it is consistent and with the stock of available housing on the markets dwindling every month, prices in most areas are increasing.

Last month I mentioned how would-be buyers queued from dawn to secure planned - but as yet, not built - new houses in North Wicklow (Newtownmountkennedy).  This obviously creates opportunities for sellers even in the south of the county and in bordering counties, like Wexford, to make their homes more attractive now for families who are open to a commute of up to one hour.

 As the current generation of first-time buyers moves away from the concept of a 'starter home', it now makes sense to consider a three or even a four bedroom home with garden and proximity to schools within an hour drive of the capital, over  a one or two bedroom apartment on the outskirts of Dublin's M50 at the same, and sometimes higher price.

 With our entire planning system facing overhaul this year, in accordance with the government’s programme for the year, this low level of output is not going to improve quickly.

This might be relevant for the owners of run-down houses in the area, who were previously reluctant to spend the necessary money to get their properties market-ready.  If this applies to you, just give me a call directly on  +353 53 942 1718 and I will let you know about the demand (house-hunters and their budgets) in your particularly area.

For specific queries or to speak with a local property expert about your buying and selling needs in Wexford, Wicklow and surrounding areas, contact Michael, Alan or Eileen Kinsella at www.KinsellaEstates.ie .  

Email me directly on michael@kinsellaestates.ie or telephone: +353 53 94 21718