Real Estate Alliance

Estate Agents Hit Out at the Banks for Continued Stalling in the Property Market

Estate Agents Hit Out at the Banks for Continued Stalling in the Property Market

- Real Estate Alliance AGM Focuses on The Next Steps for the Property Market –

- Members welcome the increased affordability in the market –

- Noted increase in viewers over recent weeks -

Real Estate Alliance, the national property group comprised of some of the country’s longest established estate agents, held their AGM in The Heritage Hotel in Killenard, Co. Laois on Friday, 14th November. The availability of funds and affordabilty were key items on the agenda as the group looked at what the months ahead may bring for the property sector. The appointment of Paul G. Grimes, Director of Grimes Real Estate Alliance in Ashbourne and

Skerries, as Chairperson of the national property group and Michael Boyd of Boyd's Real Estate Alliance of Kilkenny as Vice-Chairperson were also ratified by the group.

The banks were on everyone lips during the day as some of the country’s longest established estate agents vented their frustration at the lack of capital available for those looking to purchase in the current climate. Sentiment is beginning to turn in the marketplace with member offices showing a marked increase in viewers and bids on houses.  Although not at the level experienced at the peak of the marketplace, it has improved significantly in recent weeks, according to Real Estate Alliance members. The frustration being felt is that despite agents around the country reporting steady interest in sales and offers made on properties, the sales cannot be closed as credit is not forthcoming.

“While many people are recognising that there is currently value to be had in relation to properties around the country, the country in many ways has been brought to a standstill by the banks. As long as transactions cannot be completed the situation in this country will not improve and the implications of this are far reaching”, commented, Michael Boyd, incoming Vice-Chairman of Real Estate Alliance. “The recapitalisation of the banks is now being accepted as inevitable. The sooner this happens the bettter as the country will be taken off hold and business, and personal transactions can recommence, benefittting the economy as a whole”, said Mr Boyd.

 “There is a need for banks to recommence lending to the property sector so transactions can happen and businesses can get on with what they do. The securitisation and exchange of property is fundamental to commercial life not just first time buyers”, according to Michael Boyd, Boyd’s Real Estate Alliance.  

“Credit is the lifeblood of our economy”, according to Healy Hynes of Hynes Real Estate Alliance in Athlone. “If the banks now want to restrict that blood to themselves it will be a like a tourniquet around the neck of Ireland Inc. in the long term, causing more ill than good.” 

Real Estate Alliance members welcomed the results of the EBS affordability study published last week. According to the joint EBS / DKM report the average working couple buying their first home is now paying around 20% of their net income in mortgage repayments, compared with 26% two years ago. This 30% improvement in affordability is expected to strengthen even further once the most recent round of interest rate reductions is passed on to consumers. With more interest rate reductions in the offing, first time buyers will find themselves better off than they have been in many years.

“The steps in the budget to increase mortgage interest relief, combined with interest rate reductions, means that first time buyers can take full benefit of the reduced prices the market is now offering”,  said Mr. Hynes.

Real Estate Alliance consists of 40 offices around the country with each member in business for an average of 45 years each. “We have the experience to guide our clients through this”, said the incoming Chairman, Paul Grimes. “Our members are long-standing in their communities and have the expertise to get through these challenging times. We were never under any illusions that the property sector is cyclical. We have been through recessions before and come out the other side.  Many of the Real Estate Alliance agents are lucky in that they are not overly dependent on the residential market, which has been hardest hit and as such they are busy doing rent reviews, rating appeals and giving professional services to our clients.”

ENDS

For further information contact

Kirsten Connolly
Insight Consultants
01 29 39 9977/087 39 39 991

Newly Appointed Board of Real Estate Alliance

Paul G Grimes (Chairman) - Grimes Real Estate Alliance, Ashbourne

Michael Boyd (Vice-Chairman) - Boyd's Real Estate Alliance, Kilkenny.

Healy Hynes - Hynes Real Estate Alliance, Athlone

Philip Farrell - Brophy Farrell Real Estate Alliance, Newbridge

Harry Sothern - Sothern Real Estate Alliance, Carlow

Eddie Barrett - North's Real Estate Alliance, Tralee

Gabriel O'Brien - O'Brien Collins Real Estate Alliance, Drogheda

Pat Riney - Orchard Real Estate Alliance, Rathfarnham.

Seamus Carthy - Carthy Real Estate Alliance, Castlerea, Co. Roscommon

Tanya Coyne - Coyne & Culloty Real Estate Alliance, Killarney.

NOTE TO EDITORS

Real Estate Alliance is a strategic marketing alliance comprising some of the country�s best-established auctioneers and estate agents. Our key focus is on locally-owned and established estate agents. With one quarter of the alliance�s firms in business for more than a century, and with an existing IAVI president & five IAVI past presidents among the group�s members, the alliance is characterised by the established strength of its membership. In addition, membership is only open to firms led by members of the Irish Auctioneers & Valuers Institute or the Society of Chartered Surveyors.

Clients of REA members benefit from:

Real Advice

- Because member firms are locally-rooted and independently owned, they have first-hand market knowledge that ensures clients make only the best-informed real estate decisions.

Real Commitment

- Member firms are well established, leading local businesses built on delivering the best results for their clients.

Real Service

- Our member firms have the detailed understanding of the local property issues facing clients to ensure that they provide a superior range of client services.

Real Professionalism

- As Ireland\'s highest-qualified property professionals, REA sales staff are members of the IAVI or the SCS, the representative bodies for Ireland\'s top property professionals.

Real Confidence

- IAVI members complete far more property transactions than any other professional group. Our member firms harness this transaction volume to seize opportunities and speed the transaction process for you.

Real Coverage

- With more than 400 professional staff in 40 offices located nationwide, our member firms can provide the best real estate advice locally and nationwide.