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What’s next for the property market?

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4 years ago

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SELECTION HEADACHE: Kerry manager Peter Keane has plenty to ponder ahead of his team's championship opener on Saturday. Pic: Brendan Moran/Sportsfile.

By Michael O’Connor    

This weekend I spent much of my time scrolling through various property websites, virtually searching through houses both at home and abroad.

Now don’t get me wrong, I do this quite a bit, but typically, I’m doing it out of curiosity more than intent.

Generally my wife sends me a link to a house, I have a nose at the pictures, and then I carry on living my life, the end.

This time it’s different.

The fact that we might actually buy one of the homes behind the link this time around adds a whole new and altogether stressful layer to a previously beloved pastime.

Like many, the idea of investing in property is something I have toyed with for a while. From a financial standpoint, I have never been overly drawn to the idea of real estate as an asset class.

Despite our cultural obsession with homeownership, there are multiple downsides. Blasphemy, I know, but bear with me.

Mortgage fees, property taxes, insurance, maintenance costs, estate agent fees, lack of mobility, landlord duties - to name just a few. All these seem to be conveniently forgotten when the back of the envelope property performance calc is being done.

Since 1940, the median home value in the United States, adjusted for home size, has increased at an annualised rate of 4.6%. After accounting for inflation, the average home value has risen by just 1.5% per year.

Stocks have generated roughly 7% per year over the long run after accounting for inflation. In other words, the stock market has generated returns at more than four times the rate of real estate appreciation.

With that being said, I do have some gripes with the stats above. Firstly, it ignores the excess volatility you get from the stock market.

Secondly, and more importantly, you can’t just strip out the leverage effect.

One final unique upside; if the capital appreciation isn’t what you expect, you can still live in it. The stock market doesn’t offer you a roof over your head.

Like most things in life, nothing is ever as good, or as bad, as it seems.

Property is no different.

With the background out of the way, let’s get into the important stuff.

Where do prices go from here?

My opinion: Do I think house prices are cripplingly high for first-time buys? Yes. Do I think they can go higher? Absolutely.

While I don’t think that property can continue to grow at the same clip into a rising interest rate environment, there are too many supportive variables at play to justify any significant move lower.

To read the full in-depth review of each factor driving the current property market and how long these factors will persist, go to www.theislandinvestor.com.

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Noel O’Sullivan returns to European Rally Championship

Noel O’Sullivan returns to European Rally Championship

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9 hours ago

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16 April 2026

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O’Sullivan returns to European Rally Championship

Muckross co-driver Noel O’Sullivan is set for a busy season as he returns to the FIA European Rally Championship (ERC) while also preparing for a record-breaking attempt on home soil.

O’Sullivan and driver Callum Devine have signed with the Swedish team JC Raceteknik for a full campaign focused on asphalt events. Their season begins this week at the Andalusia Rally – Sierra Morena in Spain. O’Sullivan remains the only Killarney-based co-driver competing at this level for a full season.
He brings significant international experience to the team, having previously worked with WRC driver Jon Armstrong during his early European outings. O’Sullivan and Devine recently proved their pace against top European crews with a fifth-place finish at the 2024 Rali Ceredigion in Wales.
Devine said:
“I’m really looking forward to coming back to the ERC. It’s always great for a driver to compete against Europe’s best on some iconic events. We’ve had great success back home in Ireland over the past few seasons, winning two Irish Tarmac Rally Championships, and we feel now is the right time to come back and take on some ERC events. Starting with Rally Sierra Morena, I’m delighted to be joining JC Raceteknik. I know they are a very professional team with a wealth of experience, and I’m looking forward to working closely with them.”
The European schedule will not interfere with O’Sullivan’s local plans. Following the rally in Spain, the pair will return to Kerry for the Rally of the Lakes over the May Bank Holiday weekend. They are aiming for a fifth consecutive victory in Killarney as they look to move back into the lead of the Irish Tarmac Rally Championship.
The move to the European stage follows a successful week for O’Sullivan, who was recently named the International Motorsport winner at the Kerry Sports Star Awards.

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Classic Tour set to celebrate heritage roads in June

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9 hours ago

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16 April 2026

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Classic Tour set to celebrate heritage roads in June


A new heritage motoring event, the Killarney Classic Tour, has been confirmed for June 26–27, 2026. The two-day tour is designed to celebrate the iconic rally stages of Kerry and the Beara Peninsula.


Headquartered at the Gleneagle Hotel, the event is non-competitive and open to a wide range of vintage and historic cars. Organisers are placing a particular focus on period-correct rally cars and recreations that reflect the history of the Circuit of Ireland, the Circuit of Munster, and the early years of the Rally of the Lakes.
The tour is the work of two well-known figures in Irish rallying, Mike Marshall and Micheal O’Mahoney. Marshall, a founding member of the Rally of the Lakes and Clerk of the Course for over 20 years, has designed a route that allows drivers to experience famous stages like Moll’s Gap at a relaxed pace. O’Mahoney, a long-term supporter of the sport through Rentokil and a historic car owner himself, joins Marshall in the venture.

Co-Founder O’Mahoney said:
“This event is about bringing people back together – the cars, the stories, and the friendships that have always been part of rallying. It’s a chance to step away from competition and simply enjoy these roads.”



The Saturday itinerary includes a lunch stop in Castletownbere before the field returns to Killarney for a gala dinner at the Gleneagle Hotel. The evening will feature guest speakers and a focus on the shared history of the sport.
“This event is about bringing people back together — the cars, the stories, and the friendships,” added Micheal O’Mahoney.
Registrations are now open at www.KillarneyClassicTour.ie.

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