Ireland Property Market may be stabilising

According to the Irish Banking Federation, the property market is stabilising. It has reported an increase of almost 30% of properties for salein Ireland, and also increased sales and mortgage applications.This news appears to suggest general economic recovery for Ireland, although may be influenced by a number of factors, such as the impact of an expected rise in repossessions, banking sector stress tests and the release of further supply from NAMA and the banks.
Although, according to the CSO’s Residential Property Price Index, these improvements actually only result in a 6% improvement in the fall in Dublin prices from -57% to -51%.
According to┬áInvestec’s chief economist Philip O’Sullivan, this low may have seemed more apparent due to low volumes of sales at the time. He has also suggested temporary tax incentives may help to increase the currently low number of family homesin Dublin.”In the absence of any meaningful new build activity, policymakers should consider introducing tax measures to encourage ’empty nesters’ to trade down, thus alleviating the current shortage of family homesin the city,” he said.
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