Main findings:
- 58% of prospective buyers have been able to save more money for a deposit since the emergence of Covid-19
- 41% believe the buying market is more competitive now than it was prior to Covid-19
- 22% expect property prices to fall by more than 5% in the next year; while 9% believe prices will rise by more than 5%
- 72% of potential buyers are planning on purchasing a property in the next year
- 42% say an increase in stock would encourage them to buy
- 76% believe the Government could do more to help the property sector
Prospective homebuyers have largely been unaffected by the economic impact of Covid-19, according to a new survey.
The survey of 2,233 people, from leading property website MyHome.ie, suggests that 58% of prospective homebuyers have been able to save more money for a deposit since the emergence of the virus in March.
Meanwhile, 41% of respondents agree that the home-buying market is more competitive now than it was before Covid-19 emerged. Just 17% disagree with this statement.
Sentiment regarding house prices has shifted significantly since the summer. In May, 68% of prospective homebuyers predicted prices over the next year would fall by more than 5%. That figure dropped to 35% in August and is just 22% now.
Now, just 9% of respondents believe prices will rise by over 5% in the next year.
Despite this hardening of opinion on prices, seven in ten (72%) prospective buyers are planning on purchasing a property in the next year.
Housing supply is still the most pressing concern for prospective homebuyers, with 42% saying that an increase in available stock would encourage them to buy a property now.
The survey also found that three-quarters (76%) of respondents believe the Government could do more to help the property sector. This figure is unchanged since August.
Covid-19 has had a significant effect on the way in which people plan for home life – with 46% saying they will make sure their home has an office.
Angela Keegan, Managing Director of MyHome.ie, said that the findings gave a fuller picture of the effect of Covid-19 on the home-buying market. “These survey findings show us that prospective homebuyers are still largely insulated from the economic effect of Covid-19, but the virus has still had a significant effect on the sector – supply issues are still a huge concern due to the suspension of construction activity during the first lockdown.”
Ms Keegan said that the earlier a Covid-19 vaccine could be approved and distributed, the better for the market.
“Once the economy gets back up and running we will hopefully see an increase in construction activity which would redress the balance between supply and demand. Our analysis shows that stock levels are down by 27% year-on-year, which is particularly concerning. We need this to be addressed.”
