Prospective homebuyers are still confident about their ability to buy despite resilient house prices and the ongoing effect of Covid-19 to the economy, according to a new survey from MyHome.ie.
The survey suggests that 71% of prospective buyers are still planning on buying a new property in the next year. This compares with 68% of prospective buyers who were surveyed last May.
However, consumer opinion regarding house prices has changed since the summer. Now, just 13% of survey respondents believe property prices will fall by over 10% in the next year, whereas last May 37% of consumers predicted that outcome.
Four in ten consumers now believe that prices will fall by up to 10% in the next year, while half of all respondents believe next year will represent a good time to buy property.
The survey of 2,716 people also found that three-quarters (76%) of respondents believe the Government could do more to help the property sector.
The virus is expected to have significant long-term effects, with 61% of respondents believing it will lead to more online processes in general to minimise unnecessary contact. Meanwhile, 23% believe it will lead to quicker sales processes in general.
In a boost to the sector, 73% of respondents to the survey said they felt safe viewing properties at present.
Angela Keegan, Managing Director of MyHome.ie, said that the findings reflected the ongoing demand that was evident in the market.
“Even though consumers have not seen the price drops that many predicted when Covid-19 emerged, demand has stayed strong throughout Q2 and Q3. It appears that many prospective buyers have not been hit by the economic fallout from Covid-19. MyHome.ie had its busiest ever month for website traffic last July, and this is reflected in the fact that seven out of ten respondents are planning on purchasing a property in the next year.”
However, Ms Keegan warned that it was crucial that construction activity be allowed to continue in the coming months.
“Our analysis shows that stock levels are down by 22% year-on-year, which is concerning. A healthy, functioning property market needs a good balance of supply and demand, and as such we need to see construction continue unimpeded over the winter if at all possible.”
