According to a new IPAV study there has been a slight drop in house prices in the first six months of 2020 compared with the last six months of 2019 for three best-selling property types.
The survey by the Institute of Professional Auctioneers & Valuers reveals that in Kilkenny there has been a drop of 3.37% for three-bedroom semi-detached homes; a drop of 2.80% for a four-bedroom semi-detached home and a drop of 0.78% for a two-bedroom apartment.
Pat Davitt Chief Executive of IPAV said this was a time defined by the Covid-19 pandemic with the shutdown of the economy taking place midway through the period and auctioneers in lockdown for 13 weeks.
“Despite early predictions by some economists and lenders of a slump in prices arising from the fallout from the virus this has not happened,” he said.
IPAV maintained from the start of the pandemic that property prices would remain firm and pent-up demand would keep prices largely stable.
“This study has underpinned that view of the market. There has already been a correction in the Dublin market by about 20pc and there are approximately 300,000 too few properties, so it would appear at this juncture there is only one way for prices to go,” he said.
And he said in rural Ireland there are properties still selling for less than the price of construction.
Mr Davitt said internationally Ireland is looking like a safe place in Europe with many buyers eyeing the country as a location for a second home.
“This trend contrasts with the outflow of funds over the years to foreign properties. Many native Irish are now re-discovering Ireland and realising the value and beauty on our door step. With a lack of enthusiasm for flying and a movement to working from home people are looking afresh at Ireland and like what they see in terms of a new lifestyle,” he said.
He said this new wave of purchasers has certainly impacted the price of country properties and anything with a water view has become much sought after.
Across the 41 separate market areas the IPAV study covers, there has been movement upwards and downwards, although not major. In the three-bedroom category the largest increases took place in Longford (7.41pc); Cork County (5.94pc) and Westmeath (5.17pc). On the other side of the equation Dublin 2 was down (-4.17pc), followed by Kilkenny (-3.37pc) and Leitrim (-3.33pc).