The Irish Auctioneers & Valuers Institute (IAVI) quarter two residential survey shows an increase in activity levels and sales transactions nationwide. IAVI Members reported an increase in the net balance* of enquiries (+39%), viewings (+38%), offers (+34%) and sales agreed (+32%) although these were at a more moderate pace than the traditionally busier first quarter.

IAVI members also reported an increase in the volume of transactions with the net balance of ‘sales closed’ increasing to +27% in quarter two compared to +17% in quarter one. It is likely that this reflects increases in ‘sales agreed’ from the first quarter. For the third consecutive quarter Dublin respondents reported increases across all activity indicators, including ‘sales closed’ figures up +49% in quarter two compared to +37% in quarter one.

The survey results also indicate a trend of moderate declines in residential values in quarter two, with a smaller proportion of IAVI members reporting second quarter price declines of more than 5% relative to quarter one.

According to Simon Ensor of the IAVI Residential Panel and National Council, “It is encouraging that the volume of transactions has increased and that activity levels continue to improve.

“This is particularly evident in Dublin, which often serves as an earlier indicator for the national market. However, any recovery in the property market continues to depend on economic conditions including employment levels, the availability of mortgage finance and the short to medium term effects of NAMA,” he said.

The survey also shows that the time it takes to sell a property remained static in Dublin at 15 weeks. In Leinster it was down eight to 21 weeks; in Munster it was up two to 28 weeks and in Connaught/Donegal it was up three to 34 weeks.

86% of respondents reported that vendors’ price expectations had become more realistic since the beginning of 2010. Commenting on projections for sales activity in their office in 12 months time, 69 % expect to see higher levels in 2011.

“We are very concerned that the lack of clarity on property tax will result in a National Property Price Register not being introduced or being postponed, despite being part of the ‘Programme for Government’. Property price transparency is essential for the sustainable operation of our housing market and it is within the Government’s remit to provide with a simple change to the data protection legislation,” he said.

Note to editors:

*This survey measures trends in activity indicators based on the ‘net balance’. The ‘net balance’ refers to the proportion of IAVI members reporting a rise in activity minus those reporting a fall.

For the purpose of this survey, the results are broken out as follows: Dublin, Leinster (including Cavan and Monaghan), Munster and Connaught/ Donegal.

The Irish Auctioneers & Valuers Institute represents c1850 qualified property professionals operating in all sectors of the property industry throughout Ireland