Improved lending prompts steady property upturn
The first signs of a pick up in lending have led to a "tentative improvement" in Longford's property market.
Evidence of a gradual upturn was disclosed to the Leader by sources this week just as the Irish Banking Federation suggested the property crash may be bottoming out.
New figures indicate that the number of mortgages drawn down in the second quarter of this year was some 15 per cent higher than the first three months of this year. Over 12,000 mortgages amounting to a total of p2 billion were issued during the April to June period.
More affordable prices and a more laissez faire policy adopted by some banking institutions has also seen an increasing number of first time buyers entering the fray and made up around one quarter of the overall market during the second three month period of 2009.
Longford town auctioneer Jonathan Quinn of Property Partners Quinn Brothers revealed activity has climbed in recent weeks albeit at a leisurely and disjointed pace. "It's been mixed. There have been sales but there is no consistency to it," he said.
One of the contributing factors which has hampered property dealings even with the IBF's positive projections, was getting overly cautious bank managers to part with cash and rhis is still proving a steep obstacle for many.
"There has been an increase in activity but it has been held back by a lack of finance. When finance becomes more available then you will see an upturn. The people that are enquiring are serious about buying," he said.
House price falls have meant that new buyers now only have to borrow the same amount they did in 2005 to purchase a home.
And while the stricken construction sector and economic downturn may have played into the hands of buyers, acquiring a home from the upper end of the market can present its own problems.
"There are certain sections of the market where there is a lack of supply such as large detached houses. In a market like this where people have been holding off and then you go and look for the property you want, it may be difficult to find it because people who do have good properties aren't going to put them up for sale," he said.
Some parts of the industry have seen drops of over 30 percent with other sectors encountering an even greater fall, but according to Mr Quinn, a small number of cases have surpassed initial guide price projections.
"We have had three situations that have exceeded the guide price. That was where there was some competitive pricing but overall, I would probably say there has been a tentative improvement (in Longford) but it's (market) still at very low levels," he concluded.
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Friday 10 February 2012
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