Housing Supply Shortage Continues to be an Issue in a busy market

With recent reports showing that house prices fell in May by 0.2% compared to the same period last year, figures from the CSO (Central Statistics office) show prices increasing on an annual basis.

The national Residential Property Price Index (RPPI) increased by 2.4 per cent between May 2022 and May 2023 with house prices outside of the capital increasing by 4.5 per cent.

A daft.ie report found that demand for housing has increased nationally by 17% in May compared to the same period last year.

With this comes increased demand for new build housing which has seen significant increases of 11.1% in the past 12 months. Second hand homes increased by 3.5% in the same period.

So, what do all these figures and statistics actually mean?

On a local level, supply of both new and 2nd hand properties is very limited. There is strong demand for well-located homes from first time buyers and homeowners trading up and trading down. The net result is that properties are currently commanding strong prices due to heightened demand and limited supply. This trend looks set to continue in the short term with supply levels stagnant.

The shortage of supply has recently been highlighted by Kerry University Hospital who report it is impacting the hospital’s ability to recruit and retain staff.

DNG Ted Healy is reporting very strong interest in properties in Killarney town with sales being agreed in record time. ‘The list of interested ready to go buyers is ever increasing’ according to Ted Healy. ‘We are agreeing sales in record time, many for well in excess of the asking prices. We are currently looking for properties for sale to satisfy the demand and replenish our stocks after a number of busy weeks securing sales on behalf of our clients’