To buy or not to buy? This is the question that is haunting all potential buyers. Has the market finally bottomed out? According to the ESRI’s latest economic commentary, which delivered another positive assessment of Ireland’s property market and economic recovery, they have predicted a growth of 3.4 per cent this year and 3.8 per cent in 2015.
In 2006 at the height of the Irish property boom the ESRI predicted that the property market was overvalued by as much as 35%. At the time this advice was ignored and was deemed “inaccurate”. The ESRI is now predicting that the Irish property values will grow by a further 8 per cent this year and by 9 per cent in 2015, before moderating to growth rates of 4.9 per cent and 3.9 per cent in 2016 and 2017 respectively. Ireland’s property market still has a bit to go in terms of reaching its “real values”. This is particularly true for the more rural areas outside of Dublin.
A detailed analysis of the 2013 property price register showed that 27,800 of all recorded transactions on houses and apartments achieved full asking price. This shows an increase of 18% on the previous year. It is evident that any activity in the property market, especially in the Mayo region, is still relatively slow. According to statistics taken from the Property Price Register there was a 5% increase in property sales during 2013. This is the third lowest growth rate in Ireland as a whole, however any sign of increased activity and growth is positive.
To quote Robert Hoban director of auctions with ALLSOP space “The property market in Mayo is picking up but there is still a long road ahead. The market is following similar trends to those around the country and is picking up in the bigger towns.” Notably larger towns which have all essential amenities that attract potential purchasers including Castlebar, Ballina and Westport.
On a positive note there seems to be a demand for farmland but this demand is not as evident in rural housing which is still struggling.
Last year Mayo experienced a 12% reduction in average house prices to €95,000. It is also one of only eight counties where the market for new homes recorded a fall, which contributed to a 36% reduction in the value of new properties sold in Mayo last year.
This should not be seen as completely negative. This is a prime opportunity for investors to purchase now and yield high returns in the future on both rental and resale properties. On another positive note households in Mayo will pay 3% less property tax in 2015. This cut was imposed by Mayo County Council to reduce the hardships felt by households throughout Mayo.
The property market in Mayo is showing all the signs of recovery and growth in the future. Property prices are stagnant so now is the time to buy and invest for the future. So why not call into DNG Burke Connolly Maloney for all of your property needs. DNG Burke Connolly Maloney, IPI Centre, Breaffy Road, Castlebar, Co. Mayo. Phone: 094 9027300