Commenting on the most recent CSO Residential Property Price Index, IPAV, the Institute of Professional Auctioneers and Valuers, said there is little surprise in the figures, noting that what happens over future months and how stakeholders such as the banks behave will be critical.
“With building having come to halt, it remains to be seen how long this will last and how soon building can recommence.
“Before this crisis took hold there were already big impediments to achieving the 34,000 new homes a year every year up to 2030 that the Central Bank estimates we need.
“Every stakeholder in the market, particularly the new Government but also lenders will need to play a positive role with a bit more imagination than heretofore, if this crisis is to be abated in a way that helps long-term sustainability for everyone – home owners, aspiring home owners, builders and lenders.
“With regard to lenders they will need to show forbearance and not force those in difficulty to sell before they have a chance to properly get back on their feet. That would exacerbate the situation, cause an unnecessary drop in prices and prolong recovery.
“There is now little credit in the market, as opposed to 2007, and banks are much better prepared for this crisis. Lenders should stop putting overly strict conditions into loan approvals,” Mr. Pat Davitt, Chief Executive, IPAV, remarked.
He said today’s figures show that property prices in general are over 20 percent lower than at their peak in 2007.
“In many areas of the country they are substantially more than 20 percent behind,” Mr. Davitt added.
Mr. Davitt said interest rates of 4.5 percent on loans as announced by the Government are still too high.