The only news coming out of Ireland’s property market at the moment is bad, very, very bad. Repossessions in the North have risen by almost 100%, commercial prices are falling at an unprecedented rate, and Ireland fell into recession before the rest of the eurozone as its housing market crashed.
If you own a home in Ireland and are trying to sell – you’re going to be depressed by all of this negativity. However, if you’re in the market for a well-priced property in a stunning nation where buyers are very highly prized, you should probably be concentrating efforts on Ireland!
The ‘good’ bad news from Ireland’s property market favours buyers – i.e., what’s bad for the vendor is great for the buyer, and nowhere is the news gloomier for the vendor than in Ireland.
Ireland’s property prices rode ever higher on a wave of almost unprecedented confidence in the nation. After putting its troubles far behind it, Northern Ireland was regenerating at a faster rate than even the most impressive cities in mainland UK, and as for southern Ireland, well, the rate of international investment into business was incredible, and everyone felt this wealth and affluence keenly.
All of this positivity rolled over into the housing market as the rich became wealthier and sought more attractive properties, those who had been renting found they had greater wealth and more mortgage products available to get them on the housing ladder, employment opportunities rose and attracted inward migration, and the reawakening of interest in Ireland extended as far as the second homes market into which local and international buyers flooded. All of this put upside pressure on prices and values for homes rose and rose.
However, whilst all of this was going on, few remembered that housing patterns are notoriously cyclical in countries such as Ireland and the UK, and that inevitably, what goes up beyond what the market can actually support, must inevitably come down. This ‘coming down’ effect is what we’re seeing at the moment. There is no affordability or desire in the local market and as a result, the property market is crashing.
House prices are falling, those who bought towards the peak or thanks to a sub prime mortgage product and who are now facing affordability options as inflation and unemployment rise, are being forced to sell at a knock down price or even lose their homes. Banks selling repossessed homes are not waiting for a top offer, they’re flooding the market with property product that they just have to off-load – and all in all the market is really suffering. This is terrible news for those who bought recently or who are in a position where they have to sell their property in Ireland – but for buyers in a position to pay up, it is incredibly positive news!
The fundamentals supporting Ireland’s attraction and appeal have not changed! The nation has the right taxation environment to attract and retain international business. The nation has a buoyant tourism market, there is also demand for student accommodation, and as people fall off the housing ladder, there are also more local people seeking rental accommodation. Yes, unemployment is rising and some firms will shut up shop and leave. Yes, tourism figures may retract in the short term as those who would love to visit just can’t afford to at the moment – but just as the housing market is cyclical, so are these aspects of the Irish economy.
The wise are positioning themselves in the market right now. The majority buy when everyone else is buying and therefore risk paying over the odds for property – but the wise minority wait until everyone else is fleeing the market. If you get in now you can get in for an incredibly discounted price – and you will be positioning yourself favourably for the next turn around in housing market fortunes in Ireland! That’s what we think anyway – however, we’re not giving you any advice and you may not agree with our opinion – we just wanted to share it with you!