If you have been considering buying a house in Ireland, 2024 may just be the year to take action. After some years of market instability and interest rate rises, property experts agree things are looking up for residential home buyers in 2024. Given buying a house is the largest purchase most people make in their lives, it’s not surprising that many home buyers feel daunted by the prospect, particularly after a period of economic uncertainty. In this blog post, we share some of the common questions our property conveyancing team is currently being asked and their insights into the market to help you decide whether buying a house in Ireland in 2024 is for you.
Is 2024 a good time to buy a house in Ireland?
Property experts offer an encouraging outlook for buying a house in Ireland in 2024. According to the House Price report from Daft.ie, house prices rose by an average of by 3.4 per cent in 2023, compared to a 6 per cent rise in 2022 and 8.1 per cent and 7.7 per cent in 2021 and 2020. This data indicates that house prices could level out in 2024. Associate Profession in Economics Ronan Lyons from Trinity College Dublin says that as economic uncertainty diminishes and the prospect of interest rate reductions linger, 2024 is a promising time for prospective home buyers.
What is the property market prediction for Dublin?
According to Lisney, specialists in commercial and residential property and facilities management in Ireland, last year’s trend of a flat market will continue
throughout 2024, with residential demand continuing to be steady. While interest rates remain high, home buyers (particularly those searching for lower to mid-priced homes where borrowing is most common) will naturally be cautious about the impact on affordability and repayment capacity. If interest rates do come down in the latter half of 2024, buyers may become less cautious, although this will depend on the rate at which interest rates are reduced; if they fall quickly, it could suggest more widespread economic issues which could also influence home buyers’ decision making.
Are house prices rising in Ireland?
Whether house prices are rising in Ireland is a common question prospective home buyers ask. Data from the Property Price Register reveals houses are commanding prices that exceed their asking prices by 4.6% in early 2024, a substantial leap from just a year ago. According to Conall MacCoille, the chief economist at Bank of Ireland, there could be a further rise of close to 4% in Irish house prices over the year. The Economic and Social Research Institute (ESRI) recently cautioned the Oireachtas Committee on Budgetary Oversight about the potential for ongoing price increases. Their concerns stem from various factors, including low investment levels and an expanding population, leading to demand outpacing supply. These dynamics suggest a continuation of the upward trajectory in house prices for the foreseeable future.
Will interest rates go down in Ireland in 2024?
The latest ECB Survey of Professional Forecasters expects the ECB MRO rate to fall to 4.25% in the second quarter of 2024, before coming down to 3.5% by the end of 2024. This forecast suggests a first interest rate cut in the second quarter of 2024. However, the majority of respondents in the ECB survey expect the rate to stay at 4.5% in that quarter with rates cut after that, possibly to 3.5% by the end of the year, followed by more cuts to 3.0% in 2025 and 2.5% in 2026.
Why does buying a house in Ireland take so long?
Buying a house in Ireland can take time because there is a significant amount of paperwork involved. Typically, the conveyancing process can take anywhere from a few weeks to several months and depends heavily on having easy access to the information that’s needed for the sale. For example, if the seller didn’t request title deeds for the property before it went sale agreed, it can take weeks to obtain them and delay the conveyancing process. Another factor that can delay the sale of a house is if either party doesn’t have a PPS number, which is a legal requirement of the sale. It’s also crucial you have a proactive conveyancing team by your side to make sure requests from the seller’s solicitors are expedited and keep the sale moving. At Gibson and Associates LLP, our property conveyancing team prides itself on an efficient and seamless conveyancing service for our clients. We understand how important your property purchase is and that the process can feel overwhelming, but we are committed to giving you peace of mind so you can enjoy this exciting time and look forward to moving into your new home. If your property has gone sale agreed, get in touch with our conveyancing team to find out about the next steps.
You can book a virtual appointment with a property conveyancing specialist here, or call us today on (353) 01 264 5726.
