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The chronic undersupply of properties will continue into 2023

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By Ted Healy of DNG TED HEALY

Firstly, happy New Year to all our readers, it has been a great privilege for me to contribute here on property related matters every fortnight and I hope that it has proved insightful.

As we begin a new year it is always beneficial to look back before we look forward. The past 12 months in the property market have certainly been eventful. We experienced unprecedented activity post pandemic lockdowns with demand far exceeding supply in all areas. This saw strong prices being achieved in record time frames in the first half of 2022.

The latter half of the year saw dramatic changes in the world economy with the ongoing conflict in Ukraine and rising energy costs, inflation and interest rates. Despite these dramatic events we have not experienced a significant hit to housing demand.

The myhome.ie Q4 Property report, published this week, shows that while asking price inflation may have dropped in Q4, just 3% of homes listed for sale in this period saw asking price reductions which demonstrates a resilience in the market. That said, this resilience will be tested in 2023. Current buyers in the market are now stretched to the largest extend in over a decade, with the average residential purchase now running at 7.7 times’ average wage.

The report shows that asking price inflation has continued to slow, the annual figure is now running at 6% nationally. It is important to note here that while price inflation has slowed, we are not talking about price falls but a slowdown in the level of price increases. The data shows that while there has been some cooling in demand and increased asking price reductions, trading has continued to be resilient with premiums still being paid over and above asking prices.

A very interesting feature of the report is that the average time to 'Sale Agreed' in Q4 was 2.7 months nationwide, which is indicative of a very tight housing market.

MORTGAGE APPROVALS

Average mortgage approvals were up 4.3% on the year. We expect 2023 will see a further slowdown in asking price inflation, although the imminent change in the Central Banks lending rules to allow for borrowings of four times income will provide the market with a boost.

The continuation of supports such as the First Home and Help To Buy Schemes will also help first time buyers in a market that still requires much more stock. While those stock levels are improving gradually on a national basis, they are still not running at levels required to satisfy demand.

On a local level, the Killarney property market has certainly proved resilient. The past 12 months has seen record prices achieved for varying property types, from three bedroom semi-detached houses to four/five bed detached family homes.

The chronic undersupply of properties to the market will continue in 2023 with demand far exceeding supply. The lack of availability of new homes is a cause of concern. Proposed changes to planning legislation may speed up the planning process but build cost inflation and rising interest rates may weigh on activity.

We expect to see continued demand for properties in the Killarney area from a host of purchasers from first time buyers, retirees, right sizing buyers, holiday home buyers and family home purchasers.

At DNG Ted Healy, we are currently looking for properties in the Killarney area to satisfy these house buyers. The end of 2022 saw us successfully close a large number of sales and we now seek stock for our 2023 purchasers.

If you are considering selling your property in 2023, please get in touch. We would be delighted to meet and speak to you to guide you through the process and advise you on how to best maximise the price of your property.

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Credit Union launch a new collaboration with Gilroy’s Green Energy Ltd.

Building on recent success the Credit Unions of Kerry and West Limerick have launched a new collaboration with Gilroy’s Green Energy Ltd. Gilroy’s Green Energy Ltd specialise in Photovoltaic (PV) […]

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Building on recent success the Credit Unions of Kerry and West Limerick have launched a new collaboration with Gilroy’s Green Energy Ltd.

Gilroy’s Green Energy Ltd specialise in Photovoltaic (PV) Solar systems that generate electricity, battery storage, air to water heat-pumps and much more.
Gilroy’s work with customers to receive the SEAI once-off grant towards the purchase and installation of solar photovoltaic (PV) systems and heat pumps for your home.
Collaborating with Kerry and West Limerick Credit Union expands the finance options available to Gilroy’s Green Energy Ltd customers to help finance new PV Solar Panel installations. Loan rates will be directly linked to the property BER starting from 4.7%(4.89APR) for an “A” rated BER.
Martin Gilroy; CEO with Gilroy’s Green Energy Ltd said: “We are delighted to officially launch this collaboration with the Credit Unions of Kerry and West Limerick. Customers have already reaped the benefits on recent installation projects after contacting their local Credit Union. Having a direct link to local Credit Unions allows us to guide customers to affordable financing options based on the specific installation quotation we provide at very competitive rates.“
Speaking on behalf of the Kerry and West Limerick Credit Unions, Ashley Fitzgerald added: “We are delighted to have Gilroy’s Green Energy Ltd come on board as part of our Greener Homes Loan offering. Home Energy Upgrade have become a prominent concern and talking point among members in recent months, by Credit Unions having a direct link with Gilroy’s Green Energy Ltd allows both sides to make referrals and seek the best finance option for members. We are working hard building relationships with Green Energy Ltd providers as we want to ensure our members can avail of the best loan rates for all upgrade works.”
Credit Unions across Kerry and West Limerick. Abbeyfeale Credit Union, Cara Credit Union, Killarney Credit Union, Listowel Credit Union and Rathmore and District Credit Union can be reached via: www.creditunion.ie
Gilroy’s Green Energy Ltd can be contacted on 066-7115920, email info@gilroys.ie or for more information visit www.gilroys.ie.

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Racegoers Club to host Cheltenham Preview Night

Killarney Racegoers Club will host its annual Cheltenham Preview Night in Corkery’s Bar on March 7. Admission is free and this year’s chosen beneficiary is the Killarney Branch of St […]

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Killarney Racegoers Club will host its annual Cheltenham Preview Night in Corkery’s Bar on March 7.

Admission is free and this year’s chosen beneficiary is the Killarney Branch of St Vincent De Paul Society.
The expert panel includes professional punter Paddy Wilmott, leading jockey Conor McNamara, up-and-coming Kerry-based trainer Eoin McCarthy and local bookmaker Brendan Tyther with Vince Casey acting as the event’s compere.

“There is no admission fee but a raffle on the night for dual membership of Killarney Racegoers Club for the year, which includes 13 days racing and many reciprocal days to other race meetings,” said Mr Casey.

The Cheltenham Festival begins on March 12.

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