3 BEDROOM HOUSE PRICE CHANGES
JANUARY 2015 REPORT
The latest residential 3 bedroom house price survey by myhome.ie (see the DAFT survey) predicts a continuing growth in property prices during 2015, although at a more moderate pace than occcured during the latter half of 2014.
Unknowns clouding accurate forecasts of residential property prices during 2015 include the following:
1. The eventual outcome of delibrations currently taking place between the Central Bank (regarding its proposed Loan to Value cap of 80%) and those who argue that this will restrict the market and that it is biased towards wealthy buyers, preventing less well off first time buyers from purchasing a home of their own.
|2. Another big unknown is the actual increase in supply of new quality homes during 2015 in urban regions, particularly the greater Dublin area. NAMA has promised that it will provide finance to developers to alleviate the gap between demand and supply, but a large proportion of the new houses to be financed by NAMA will not be completed until the end of 2016.
3. Finally, the number of properties bought as buy to let investments will almost certainly reduce as a result of the recent ending of tax relief on property related Capital Gains Tax. This may result in less competition driving prices upwards, but again the gap between supply and demand is, as always, the main source of price changes in the housing stock.
MYHOME AVERAGE | 3 BEDROOM HOUSE PRICE CHANGES | JANUARY 2015 REPORT