House prices falling

The new Government and policy makers must focus on increasing social and rental housing stock, the author of a new property report has said.

The latest Daft.ie report shows that in Quarter 2 2020, the average house price in Cork county was €218,685 which is 6.9 per cent lower than a year previously.

Cork city also saw a price drop of 7.1 per cent and now the average sales price is €265,637 for Q2 2020.

The Daft.ie Housing Market Report released on Tuesday revealed that figures for the number of properties posted for sale or to rent during June across the country indicate a sharp recovery in market activity in June, compared to April and May, particularly in sales.

There were more than 5,200 properties listed for sale in June, compared to roughly 2,000 in both April and May. Whereas those two months had seen activity collapse by three-quarters, the number of homes advertised in June was just 15 per cent lower than in the same month in 2019.

In the rental sector, there were 38 per cent more homes advertised to rent in June 2020 than a year previously, with Dublin driving this trend.

Commenting on the report, Ronan Lyons, economist at Trinity College Dublin and author of the Daft Report, said: “Market activity rebounded strongly in June, perhaps reflecting an element of pent-up demand carried over from April and May. This is particularly the case for sales, where over 5,200 homes were listed for sale during the month, compared to roughly 2,000 in both April and May.”

He added: “Nonetheless, the figure remains below the total for June 2019. In the rental segment, however, significantly more homes were listed in June this year than last. The concern remains that policymakers see this as the underlying problem solved. While the new Government may want to favour the construction of owner-occupied homes, the fundamental shortages are in the social and market rental segments and it is those segments that must be the focus for policymakers over the coming years,” he added.