"The first 6 months of 2023 have certainly been an interesting time in the residential property market. The underlying issues constraining the market continued – lack of supply, affordability, high rate of inflation, social housing issues, and construction costs.
However, the market has been performing well despite these challenges, in particular the interest rate rises. The supply and demand issues, although improving will continue for the foreseeable future. More properties are now coming to the market which will improve supply, but it takes time for the impact of any recovery to be felt.
A degree of stability has returned to the market this year. Homes in turn-key condition, close to amenities are in high demand and selling well. First Time Buyers remained relatively dominant. We have also seen the continuing trend of landlords leaving the market accelerate with a large amount of 1- and 2-bedroom apartments coming to the market.
Mortgage approvals are at record levels and although we are still at a low base in terms of supply coming to the market, it is moving in the right direction. We anticipate a busy and robust second half of the year in terms of listings and transactions.
At Quillsen, we pride ourselves on our service and expert knowledge. We know the areas we work in and the market. But most importantly, we take the time to get to know you. Our aim is to make your sale go as smoothly and seamlessly as possible, while securing the best possible price for your property."
HIGHLIGHTS & CHALLENGES
The biggest challenge continues to be that supply is simply not meeting demand. However, this is improving. As we have come from a low base in terms of supply it will take time for the full spectrum of buyers to see a notable increase.
In addition, affordability, the high rate of inflation, social housing issues, and construction costs all still need to be addressed for the country as a whole. There has certainly been a positive impact felt from the various Government schemes (First Home Scheme and Help to Buy ) along with the changes to the Central Bank rules. These factors have contributed to a more rational and stable housing market.
A strong labour market always means a strong housing market. In particular, family homes in turnkey condition have sold well. With the exit of many landlords, there has also been a lot of opportunities for first time buyers who are now eligible for a mortgage. Demand is very strong from this segment.
While many properties continue to achieve prices above their asking price, in general asking price inflation is not rising at the same rate as previously. The challenge remains for those trying to trade up in finding a suitable home and whether to go to mark before they finish or wait. Bridging/can’t find rentals. Have to sell to buy.
KEY STATS FOR HALF YEAR 2023
Average selling price* – 5% above asking
Time to sale agreed* - 4 to 6 weeks
Market profile - 60%** first-time buyers
Mortgage drawdowns - total of 20,393**
Source: *Quillsen, August 2023/**BPFI, August 2023