Irish Housing Market Trends

Ireland has seen a hit take place in recent years as property market seems to be downsizing. Families, with two full-time working partners, are finding it difficult to afford houses at their current increasing costs.

It has even been reported by Mark Keenan, a writer for business property and mortgages that working families are struggling to rent as well.

The average working couple in Ireland is earning a combined income of 70,000 euros. This is far below what a couple needs to earn to afford a home today.

It is reported that the average home in Dublin is now priced at mid 400,000 levels. Much more than what the average working couple could afford.

In just the last three months, there has been a multiple week increase to sell a home in Dublin. The housing market is slowing down and it’s slowing down fast.

Why is it that homes are being put on the market for such high prices? It could be that those selling the homes are finding it hard to sell for less …

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U.S Housing Market since ’08

It’s been ten years since the U.S. housing market crashed and caused many banks to close their doors and many people to lose their homes.

The question today is, has the market recovered? It depends on where you look….it is predicted that the market will have fully recovered by 2025, says Ralph McLaughlin, chief economist.

When predicting the recovery of the housing market, it is vital that you keep in mind the key factor of location.

Housing development varies greatly from state to state and it is places like California where we see a complete recovery in some areas and little to no recovery in others.

Such a large range between close by spaces is due to factors such as the city’s overall well-being. By this, I mean population growth and job outlook.

When a community is expanding and working within its own limits it is inevitable that different areas in the community will also look up, such as the housing market.

When developing the statistics in assessing the recovery of the housing market we compare current data to pre-recession …

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The Housing Markets most Pressing Issue

Ireland’s “most pressing issue”…

The lack of housing.

Economist Philip O’Sullivan is reported as saying that tens of thousands more houses need to be completed annually to meet current demand. Why is it that there’s such a shortage of homes?

It is on schedule right now that 21,500 homes were built this year and 24,000 for next year. Though, a good number in the race to meet demand needs, it is nothing near the needed 30-50,000 homes being built to sufficiently meet the demand.

The society of chartered survey of Ireland has predicted that this housing crisis could continue for another 10 years. Paul O’donoghue, a writer for Fora sad that drastic measures need to be taken immediately to push for the development of homes.

With too little of homes available to meet demand, it is the law of supply and demand that says the price of the homes will increase as well. Equilibrium is expected to be reached by 2026.

This, falling in line with the prediction of the housing crisis to continue for nearly …

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The Solution to the U.S Down Payment Dilemma

Those looking to buy a home in the States are all currently saying the same thing is holding them back….They can’t seem to afford the down payment.

Down payments on houses can be burdensome and oftentimes weigh on the ability to buy a home. In some cases, it calls for years of disciplined saving. Something that can be difficult for someone who wants a home and wants it now.

That’s where the start-up company Loftium comes in with a solution. This is a business started by 29-year-old Yifan Zhang of Seattle.

As someone who has personally heard her friends talk for years about the down payment dilemma, she finally decided to do something about it.

Zhang started as any other Airbnb business owner. Renting out one room in her townhouse to generate extra cash. Little did she know just how much cash she could actually generate.

Quickly into her business, she was earning enough to completely pay for her mortgage and then have some left over!

That’s when the idea dawned.

Zhang decided to eliminate …

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Newstalk Lunchtime: Ciara Kelly talks to Karl Deeter about AirBnB and the housing market

We were part of a conversation with Ciara Kelly on Newstalk’s ‘Lunchtime’ show discussing AirBnB and whether or not you can blame it for housing sector problems in Ireland. Our view is that it is part of a healthy market, but where a market is unhealthy you can’t say that it is the source of the disease, rather the malaise in Irish housing generally.

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McWilliams Ireland: Are we in a property bubble? (2nd November 2017)

David McWilliams’s show ‘Ireland’ looked at the issue of property prices here and asked if we are in a ‘bubble’. He spoke to Karl Deeter from Irish Mortgage Brokers about this who made two points. The first was that we are too late to change the outcome of the property cycle, the second was that the biggest land hoarders in the state is the state itself and that Government should release land to flood the land market and drive down the primary costs of construction.

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Irish Independent feature Irish Mortgage Brokers

We were asked for comment on housing recently by the Irish Independent and had this to say on social housing: Karl Deeter, of Irish Mortgage Brokers, suggests that sites be released for social and affordable housing schemes, or private homes, in return for equity. Developers would have little cause for complaint.

“On a vacant site (in Dublin city centre), you could build an eight-storey building with 75pc of the building rented at 20pc below market, and for the rest you have a guaranteed upward-only rent review of 2pc a year,” he says. “If we do it on a build to sell, or build to rent, we share the profits..

“We need to flood the land market. People want to talk about the law of the jungle, but you can’t be a lion, and when a rhino comes along you complain.

The general view in our opinion is that much of the malaise always comes back to the base element of housing which is land.

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Government spending more than planned to help the housing crisis

With the government paying about €260 million in the first half of 2017 above the previous first half of 2016, it means the government is trying to throw money at helping the housing crisis.

The Department of Housing has spent around €312 million during this time. The rapid increase is said to be in main part because of the Government’s housing programme.

The Minister of State from the Department of Finance, Patrick O’Donovan has responded that the impact from the increased government spending has already been seen through the amount of commencement notices being filed. Since a commencement notice has to be filed when someone has begun construction of a new home it is a good indicator of the health of the housing market. The previous 12 months from May, commencement notices have amounted to 15,579. This is up 42 percent of the previous twelve month period.

Recently there has been a housing shortage in Ireland that has taken over the housing market. It is making it harder to obtain a house and a mortgage.

The amount of total pre-approved …

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