Wednesday 13th December, 2023                  

CSO House Prices - Market Has Picked Up Again, As Predicted - IPAV

Commenting on today’s CSO Residential Property Price Index for October, IPAV, the Institute of Professional Auctioneers & Valuers, said prices have picked up again as already reported by auctioneers.

Pat Davitt, IPAV’s Chief Executive, said: “Our agents have seen a pick up since September which tallies with today’s CSO Index.

“Overly aggressive interest rates rises are having an effect but with a high proportion of non-mortgaged buyers, which could be up to 40%, we’re not seeing a major impact on prices.

“However higher interest rates and lack of availability of suitable properties are impacting socially in that home ownership has become a pipe dream for many.”

He said high interest rates, which have been a feature of State funding for the last number of years when it should not have been and long before the ECB started raising rates, have dissuaded many able small builders and developers who struggled to make projects viable.

“ECB interest rate rises have added to that situation, unfortunately, as has our dysfunctional planning system,” he said.

“The concern now is that we could see a further lack of confidence in investment, unless current ECB policy is reversed, and sooner rather than later,” he said.

Mr Davitt said it is notable that Canada is adapting an old system of pre-approved designs so homes can be built quickly and economically to tackle its housing affordability crisis.

“If we are to ensure social cohesion into the future we too need to adopt some ‘outside the box’ measures,” he said.

Ends