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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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N71 Moll’s Gap road remains closed following Killarney National Park fire

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20 hours ago

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15 July 2026

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N71 Moll’s Gap road remains closed following Killarney National Park fire

The N71 Moll’s Gap road remains closed this Wednesday lunchtime following a significant forestry fire at Five Mile Bridge on Tuesday evening.

Kerry County Fire Services personnel from Killarney, Kenmare, and Killorglin, alongside the National Parks and Wildlife Service (NPWS) fire team, worked on-site to tackle the blaze. Two helicopters were deployed to extract water from the lake to quench the flames.

The fire was brought under control at 10:30pm on Tuesday evening. However, several areas are still smouldering today and are currently being assessed by emergency crews.

The road is closed as a safety precaution while preventative measures continue, and local diversions are in place. Helicopters remain active at the scene today, taking water from the lake to dampen down areas on the opposite side of the road.

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Human activity blamed for devastating wildfire in National Park

A major wildfire that destroyed approximately 25 hectares of Killarney National Park on Tuesday evening, July 14, is believed to have been started by human activity. The blaze broke out […]

Published

23 hours ago

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15 July 2026

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A major wildfire that destroyed approximately 25 hectares of Killarney National Park on Tuesday evening, July 14, is believed to have been started by human activity.

The blaze broke out in the Five Mile Bridge area of the park along the Killarney-Kenmare road at around 5:00pm. Members of the public quickly raised the alarm, enabling emergency services and National Parks and Wildlife Service (NPWS) personnel to quickly mobilise to the scene. This early notification and swift action were critical in preventing the fire from escalating into a much more severe incident.
Fire crews from Killarney and Kenmare responded to contain and suppress the fire, with on-ground support from NPWS staff. Aerial support was also deployed to assist ground crews, with helicopters using Bambi buckets to target the flames from above.
The affected area is estimated to be around 25 hectares in size. It includes a mixture of dry heath, wet heath, and blanket bog, as well as pockets of native old oak woodland.
NPWS Divisional Manager Eamonn Meskell praised the rapid coordination of the emergency response.
“Thanks to the rapid response and coordinated efforts of all emergency personnel, NPWS staff and dedicated fire emergency crew, Kerry Fire and Rescue Service crews, rapid aviation assistance was deployed which was very effective bringing the fire under control,” Mr. Meskell said. “We will be on site on Wednesday morning to assess the affected area and monitor for any remaining hotspots and determine whether any further firefighting operations are required.”
The Minister of State with special responsibility for Nature, Heritage and Biodiversity, Christopher O’Sullivan TD, expressed frustration at the cause of the blaze.
“This is devastating and it was started by human activity,” Minister O’Sullivan said. “It was completely avoidable. We can do better than this. Thank you to the National Parks and Wildlife staff and Kerry Fire and Rescue Service and aviation crews who battled the fires in Killarney National Park.”

Photos by Valerie O’Sullivan

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