Main findings:
- 36% believe a change in Government would be a good thing for the property market, while 5% believe the Government is currently doing enough to help
- Just 19% believe there is enough supply on the market to secure a suitable property
- However, 45% are not waiting for an interest rate cut before buying; 44% say the cost of living crisis has meant they have postponed a property purchase
- 57% now looking to secure a mortgage of over five years, while 73% are seeking a fixed-term mortgage
- 78% worried about the state of the property market in general
A new survey has suggested that over a third (36%) of prospective homebuyers believe that a change in Government would be a good thing for the property market, while just 5% believe the current Government is doing enough to help.
According to the survey of 2,223 people conducted in April and May 2024 by leading property website MyHome.ie, just 21% of people did not agree that a change in Government would be a good thing for the market, with 43% neither agreeing nor disagreeing.
Furthermore, 78% said they were worried about the state of the property market in general, while just 13% believe the next year would be a good time to buy. Nearly half (44%) said that the cost of living crisis has meant they have had to postpone a purchase.
Limited supply is an ongoing issue, with 78% saying that they had to look beyond their top location choice due to supply concerns, and just 19% saying there is enough supply on the market to secure a suitable property.
However, despite this gloomy outlook for the Government, the rampant demand in the market is in evidence, with almost half (45%) of respondents saying they would not wait for an interest rate cut before proceeding with a purchase, and nearly two-thirds (63%) saying they had finances in place to buy a home.
Meanwhile, over half (57%) are looking to secure a mortgage term of over five years and nearly three-quarters (73%) will look to secure a fixed-term mortgage.
Respondents still believe there is scope for more price hikes, with 53% saying they believed the price of homes would increase in the next year.
Joanne Geary, Managing Director of MyHome.ie, said: “Taoiseach Simon Harris has pledged to build 250,000 homes by 2030, but after a decade of insufficient construction activity, it is perhaps understandable that people are wary of the Government’s promise to deliver the amount of new homes we need to properly address our supply issues.”
She said it was striking that despite the negative outlook about the market in general, strong demand was so clearly in evidence.
“On the one hand, very few people believe that the next year will be a good time to buy and most are worried about the state of the market. On the other hand, nearly two-thirds of respondents are financed and ready to go, and almost half of people won’t even wait for an interest rate cut to buy.”
She said that only sustained homebuilding would lead to a meaningful improvement in property market sentiment. “If the Government can facilitate a decent period of uninterrupted construction activity, this would make a huge difference around the country and sentiment would likely improve as a result.”
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