Increases In Property Sales Activity - IAVI

Business & Finance - Construction & Property

Tuesday, 26 October 2010 12:25

Written by Noel Cotter

The Irish Auctioneers & Valuers Institute (IAVI) quarter three residential property survey suggests continued increases in sales activity levels nationwide, albeit the pace of increases has moderated relative to quarter two and quarter one due to uncertainty in the wider economy.

In quarter three, on balance, IAVI members reported increases in the level of instructions (+31%), number of properties for sale (+31%), viewings (+17%), enquiries (+16%), offers (+13%), sales agreed (+16%) and sales closed (+15%).

According to Simon Ensor of the IAVI National Council, “IAVI members reported relatively strong levels of sales activity throughout the summer months. However, these levels are not as high as the first two quarters of the year as there is uncertainty in the market surrounding the upcoming budget and NAMA. We hope that the budget will provide certainty for buyers around key property related issues”.

The availability of mortgage finance continues to be a difficulty for buyers. According to the survey, the majority of respondents in Dublin (61%), Munster (62%) and Connaught/Donegal (62%) were of the opinion that the availability of mortgage finance for homebuyers worsened in quarter three. In Leinster, 49% of respondents believed that there was no change.

In relation to residential property values, 43% of respondents reported either ‘no change’ or marginal declines of up to 2.5% of property values. 29% of respondents reported average declines of 2.6-5% and 19% reported declines of 5.1-10%. Declines of over 10% were reported by 6% of respondents. Increases were reported by 3% of respondents.

”While values vary significantly depending on the property type and location, this proves that properties with the correct fundamentals: well-presented, in good locations and available at realistic prices are selling,” he said.

For the third consecutive quarter, the time it takes to sell a property remained static in Dublin at 15 weeks. In Leinster, it was up two to 23 weeks; in Munster, it was down three to 25 weeks and in Connaught/Donegal it was down three to 31 weeks.

“Action is clearly needed across many levels to stimulate the property sector and we are still awaiting the establishment of the Property Services Regulatory Authority (PSRA) and a National Property Price Register to enhance consumer confidence and to improve transparency by publishing property prices,” he said.