Press Release – Pent-Up Demand Awaits Pent-Up Supply to Be Unleashed
Wed May 12 2021
Affordable Solutions Yet to be Found
Commenting on today’s CSO Residential Property Price Index for March, Brokers Ireland said a further rise in prices, this time a jump of 3.7pc in the year to March along with a 23.3pc increase in the volume of purchases month-on-month in March reflects the strong demand.
Rachel McGovern, Director of Financial Services at the organisation, which represents 1,225 Broker firms, said: “While the severe lack of supply is keeping prices elevated at the moment, the next couple of months will dictate what happens with prices for the remainder of the year. As the country opens up further with the vaccine programme underway there will certainly be further improvement in supply. Agents, builders and owners have been holding off on putting properties on the market during lockdown. However, it remains to be seen just what impact this will have on the market, along with accumulated savings by aspiring buyers,” she said.
But she said the long-term trend is not good for housing affordability, particularly for young people.
“This week’s ESRI study showing home ownership rates for young adults have collapsed, from 61pc at age 30 for those born in the 1960s to just 32pc for those born in the 1980s is a very worrying trend that all policy makers should be concerned about. This is not good for our society. Government proposals under consideration at the moment need to take a wholesome, short and long-term view, beyond the life of this government, and across all arms of the State, something that hasn’t been done for decades.” she said.
12th May 2021