Half of potential first time buyers say they intend to purchase a property within the next 12 months with falling house prices remaining the key factor influencing the decision to buy, according to the latest market report from Rooney auctioneers. Availability of suitable property and overall economic conditions were cited as the next most important factors.
According to the report first time buyers are showing keen interest to buy, making up more than 40 per cent of the 'intend to buy' group. The reduction in mortgage interest rates over the last number of months, coupled with lower prices, means that affordability has greatly improved for this key group of buyers.
While the overall level of properties available on the market is at an historically high level, the number of properties available for sale in some of the more established residential areas of Galway is now very low as some potential sellers hold back in the current uncertain market conditions.
Rooney auctioneers has also reported a major increase in lettings. As the sales market awaits recovery, Rooney has found that vendors are increasingly focusing on the lettings sector as a means of maintaining their mortgage while they wait for their property to sell.
In the current climate the company has experienced an increased number of enquiries for various commercial properties with sizes varying from 2,000sq ft up to 7,000sq ft, a fact that Rooney auctioneers says is positive and encouraging in a competitive market.
Further to this month’s supplementary Budget, the Government has decided to set up an independent task force assigned to tackle the bad debts experienced during the slowdown of the economy in order to encourage new lending in the marketplace. The Government is to make €5.5 billion available for loans to kick start small to medium sized businesses.