Real Estate Alliance

Real Estate Alliance report on supply and demand in the Property market.

A new survey by nationwide property consultants Real Estate Alliance reports supply of homes has dropped substantially over 2009. As part of their annual survey, the group have uncovered a substantial reduction in housing levels right across the board.

The nationwide survey by Real Estate Alliance shows 30pc fewer homes on the market than 12 months ago.  "In all sectors, we are seeing significant decline in homes available." According to the Real Estate Alliance chairman Michael Boyd.  "On average, there are 30% less homes on the market now than there were 12 months ago."

In the second hand sector, Real Estate Alliance study estimates the supply of apartments fell 19%, bungalows by 32%, detached homes by 35%, terraced by 18 % and semi detached homes by 34%.

With bank lending particularly focussed on the first time buyer sector, this last figure is of particular interest to the national property group.

"We are seeing that supply of semi-detached homes is down more than the market average", commented Mr. Boyd.  "Our members are reporting that the reduced stock levels are as a result of families putting off moving and taking properties off the market in addition to an increase in sales", he continued.

In their comment on the 2010 Budget, REA said that the summer deadline for mortgage interest relief qualification may well act as a factor in encouraging tentative buyers back into the market, and this anticipation may well now be proved right as enquiries are up 120% since January of 2009, with 2010 viewings and sales ahead if expectations.

The news by the national property group come hot on the heels of the IAVI Annual Survey indicating "the market floor is close if not here." Mr Boyd commented, "Reduced supply and increased demand are exactly what the market requires to steady and bounce back in the long term."  He continued, "It’s early days yet however it does appear as if the worst is over for the property market".

Mr. Boyd commented further, "It’s too early to anticipate substantial price rises in 2010 as further steps towards stabilisation are required, however with general economic sentiment improving and the spectre of ECB rate rises being pushed towards 2011 the foundations are now being put in place for a sustainable recovery in the market."

REA are also reporting a drop in the numbers of new homes being marketed and a 6% drop in the stock of properties available for rent.  Whilst not at the same level as the contraction in supply of properties for sale, the reduction in properties for let will be an encouragement to landlords who have had to reduce rents in the last 18 months in a bid to keep tenants in occupation.

ENDS

Further questions: Eimer O’Keeffe, REA 086 8249040 

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.