For some in the Irish housing market, memories of the financial crisis are still fresh. The Emerald Isle felt the impact more than many European countries following the 2008/2009 crisis. Some reports wiped 50% off property prices in certain areas and commercial development ground to a halt.
However, more recently, Ireland has experienced a period of rapid growth. According to the OECD, Irish property prices have risen rapidly as a result of its strong economy and increased demand for housing.
At the same time, applications for loans to purchase property have also been increasing, and lenders now appear more confident regarding the current state of the Irish housing market.
And it’s not just the property market that is booming; the employment market is also stronger: unemployment in Ireland was at 6.3% in August of this year, a stark contrast to its high of 15% back in 2012.
In fact, some experts are worry that the Irish property market could be heading for another inevitable bubble. The sharp price increase in property values and increasing demand for property loans signal an inevitable bubble at some point in the future.
Other factors such as Brexit, and an increase in protectionist policies, also contribute to the uncertainty of the Irish economy currently.
Similar to the UK, Ireland has a need for more homes. The annual housing completion figures peaked back in 2006, with 88,419 new homes being constructed, whereas just 14,922 were constructed last year. This shortage in supply quickly results in a hike in property prices: the national average price increase for a home has been around 12% annually in recent years.
The good news is, the development market seems to be on the rise also, which could reduce such unhealthy hikes in property prices. Commencements (plans to begin home construction) increased from 2,949 for the first five months of 2016 to 7,533 over the same period in 2017. This will clearly lead to an increased housing stock becoming available shortly.
Despite improvement in the lending market, the total number of non-performing mortgages held by homeowners remains worryingly high. A report by Moody’s shows that loans with long-term arrears of greater than 720 days account for a grand portion of this total.
However, many experts consider that things will continue to improve in the Irish housing market and developers also seem optimistic as evidenced by new housing developments such as Maydenhayes in Mornington Co Meath offering 3, 4 and 5-bedroom A-rated family properties for sale at affordable prices just a short commute from Dublin, and in an area which offers a wide range of family-friendly attractions and amenities.
If you’ve been wondering if this year is the right time to finally upgrade your home, check out this latest new home development offering undeniable value and quality of living.