Most people expect house prices to continue rising over the next five years, a survey has shown.
The KBC Bank consumer sentiment index also shows younger people believe their incomes will improve .
The survey found seven out of 10 people see house prices being higher in five years’ time. Only one in 10 sees them falling.
KBC economist Austin Hughes said: “Could this fear of ever more expensive housing be adding to demand at present?”
Consumers in Munster are more convinced of this than those in other prov-inces , and expectations of price increases are stronger among men than women.
Slightly fewer of those in the 25 to 44 age group expect price appreciation.
More people in the 55 to 64 age group feel prices will rise, according to the index.
Mr Hughes said the results indicate the belief among large numbers of people that the shortfall in supply will persist.
Latest data from the Central Statistics Office show property prices rose by 14pc in the year to last November. They are now close to those seen during the Celtic Tiger property bubble.
There has been a massive ramping up in construction, with some predicting 30,000 housing units will be built this year.
However, the majority of homes completed next year will not be available to first-time buyers and will instead go toward social housing and the private rental market, according to a recent report from Goodbody.
This will leave an ongoing shortage of owner-occupied homes for sale .
An indication of how hot the property market is can be gleaned from the fact mortgage drawdowns passed €10bn last year – the highest figure since 2008.
The KBC survey also found most consumers are positive about the prospects for the economy up until 2027.
Consumers outside Dublin, women and those facing financial difficulties are more cautious than others.
Younger consumers are more optimistic, but the majority of over-55s expect their incomes will be lower in five years’ time.
They would be correct. In fact it will probably accelerate even more considering that the sharp cost increase in new builds will also drag the second hand market even higher.
As long as demand out performs the supply, the best that new homeowners can hope for is stagnation.
While inflation continues this high nothing will come down in price.
There will be a saturation point eventually. It’s going to come to the stage where people physically can’t borrow anymore from the banks
Doing nothing will see things get worse for the housing market and for a lot of people that have the power to change this doing nothing is a lot easier than doing something
[deleted]
And a large number of those people are extremely happy about this.
“greed not showing any indication of subsiding”
The rest of them know it.
People thought that in 2007 as well, until it didn’t.
Building huge apartment blocks with every single one of them rent only at a disgustingly high price isn’t exactly helping either.
even when house prices were down they were still drastically up.
so long as foreign play actors have the ability to block buy whole housing estates and offset costs against assets in other countries until profits are turned then the common prospective homeowner doesnt stand a chance competing for a house and will always get outbid.
If something doesnt change that behavior then yeah, theres no reason for property prices to keep rising.
My mate bought a house recently and myself and my partner decided we’d like a house in the same spot just the next phase, he paid 240k which for myself and partner is reasonably obtainable but the next phase of houses is 330k. Same house, same estate just a year later. Unobtainable now so I’ll be renting for another while, wasting more money.
Here we go again. Every thing is awesome. Boom. €200000 cheaper in 2 years
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From the article:
Most people expect house prices to continue rising over the next five years, a survey has shown.
The KBC Bank consumer sentiment index also shows younger people believe their incomes will improve .
The survey found seven out of 10 people see house prices being higher in five years’ time. Only one in 10 sees them falling.
KBC economist Austin Hughes said: “Could this fear of ever more expensive housing be adding to demand at present?”
Consumers in Munster are more convinced of this than those in other prov-inces , and expectations of price increases are stronger among men than women.
Slightly fewer of those in the 25 to 44 age group expect price appreciation.
More people in the 55 to 64 age group feel prices will rise, according to the index.
Mr Hughes said the results indicate the belief among large numbers of people that the shortfall in supply will persist.
Latest data from the Central Statistics Office show property prices rose by 14pc in the year to last November. They are now close to those seen during the Celtic Tiger property bubble.
There has been a massive ramping up in construction, with some predicting 30,000 housing units will be built this year.
However, the majority of homes completed next year will not be available to first-time buyers and will instead go toward social housing and the private rental market, according to a recent report from Goodbody.
This will leave an ongoing shortage of owner-occupied homes for sale .
An indication of how hot the property market is can be gleaned from the fact mortgage drawdowns passed €10bn last year – the highest figure since 2008.
The KBC survey also found most consumers are positive about the prospects for the economy up until 2027.
Consumers outside Dublin, women and those facing financial difficulties are more cautious than others.
Younger consumers are more optimistic, but the majority of over-55s expect their incomes will be lower in five years’ time.
They would be correct. In fact it will probably accelerate even more considering that the sharp cost increase in new builds will also drag the second hand market even higher.
As long as demand out performs the supply, the best that new homeowners can hope for is stagnation.
While inflation continues this high nothing will come down in price.
There will be a saturation point eventually. It’s going to come to the stage where people physically can’t borrow anymore from the banks
Doing nothing will see things get worse for the housing market and for a lot of people that have the power to change this doing nothing is a lot easier than doing something
[deleted]
And a large number of those people are extremely happy about this.
“greed not showing any indication of subsiding”
The rest of them know it.
People thought that in 2007 as well, until it didn’t.
Building huge apartment blocks with every single one of them rent only at a disgustingly high price isn’t exactly helping either.
even when house prices were down they were still drastically up.
so long as foreign play actors have the ability to block buy whole housing estates and offset costs against assets in other countries until profits are turned then the common prospective homeowner doesnt stand a chance competing for a house and will always get outbid.
If something doesnt change that behavior then yeah, theres no reason for property prices to keep rising.
My mate bought a house recently and myself and my partner decided we’d like a house in the same spot just the next phase, he paid 240k which for myself and partner is reasonably obtainable but the next phase of houses is 330k. Same house, same estate just a year later. Unobtainable now so I’ll be renting for another while, wasting more money.
Here we go again. Every thing is awesome. Boom. €200000 cheaper in 2 years