Wednesday June 10th: Today at its headquarters in Dublin, the Irish Auctioneers and Valuers Institute (IAVI) held a briefing for members on the current state of the residential property and development land markets.

According to the IAVI, affordability levels for residential property have returned to 1996 levels at 15% of people’s income, down from 40% at the peak of the market.

Simon Ensor FIAVI, of the IAVI National Council’s Residential Panel, said,”consumers remain concerned that the market is overpriced. Three quarters of potential buyers felt that prices have fallen by 20-30% and would fall by a further 10%. The reality is that prices, for certain properties, have already fallen as much as 40-50% in Dublin and throughout the Country.

“Correctly priced homes, which have come on the market since January, are moving well. Vendors are being far more realistic and are interested in doing deals. We have also seen a reasonable amount of off-market activity.

“We believe that a significant volume of potential purchasers, particularly those who have sold properties recently, are waiting in the wings to make their next purchase. Also, we have noticed an increase in people returning from Britain, now that Ireland is more affordable. Based on the high levels of enquiries we are receiving, we anticipate that demand for well-priced homes will increase”.

“We have been saying for some time that there is value out there for those looking to buy. No-one can call the market at the moment and no-one knows what the next few months will bring. However, the basic driver behind residential property sales is that people buy new homes as their circumstances change. There is no such thing as a perfect time to buy. If a house matches the buyer’s requirements, from attic space to garden size, then it’s a good time for that buyer”.

“At present the major hurdle for those interested in property is accessing finance from the banks. Once the issues with the banking sector are resolved, we expect this to change” he said.

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