The question that is in all our minds is how the property market will fair out when this Pandemic is over. Over the last few weeks, I have been faced with that question numerous times so before I put pen to paper, I did a bit a research and this is merely my opinion and bear in mind I am not an economist but I have been in business over 25 years and have seen property go up and down over the years.
I don’t think the property prices will decrease simply because the supply isn’t there, we are in the middle of a housing crisis and the supply has in no shape or form matched the demand. If you look at 2007 -2013 there was an over supply of houses at a very high price where the interest rates were higher then they are now so the market crashed and the prices plummeted. Currently the interest rates have never been so low, the prices have not increased that much over the last few year (yes, a bit but nothing like 2005/6)/. I remember in 2006 I was selling 3 bedroom semi ‘s in Cobh for €320k – mad but now they are €210k on average – that is second hand.
What I do think, is that prices will Plateau. We are lucky here in Cobh there are a variety of houses so by and large there are very few the same and in comparison to Cork we are extremely affordable. Over the last 3 years 60% of my sales have been to buyers outside Cobh so that says a lot about our town. I also think Cobh is becoming the place to live, we are on the water, we are an island, it is safe, we have an extremely good transport system both train and bus and we are only 20 mins from the City
My other piece of advice is that if you have mortgage approval don’t hesitate in purchasing when you can get out and view as I do think the banks will tighten up for a spell of time after this in order to recover from what they have had to deal with over the last few weeks. In the long run I do think the central banks (ECB) will want the banks to lend and it is likely they will push them to do so.
If you put down a deposit on a house before all this happened and you are due to sign – go for it but of course only if you are happy to do so, as the above will apply.
Viewings – how am I doing them – well I am not simply because we are in lockdown but what I am doing which I think is actually the way forward for people, is that I have taken amateur videos of all the properties and then connect via Zoom with clients and show them the video and walk through the property. This in a way is your first viewing so when the lockdown is over, we can then physically view the property. I have also got virtual viewings on some properties and again this is working out as people really get a feel of the property.
Stay Safe – next blog next week on how to get your house ready for sale.