Statement by Marian Finnegan, Managing Director, Sherry FitzGerald.
February 27th, 2023
The stock of houses available for sale remains at a historically low level, according to the latest analysis by Sherry FitzGerald Research. There were only 15,140 second-hand properties listed for sale nationwide in January 2023. This means that the stock of second-hand properties for sale has fallen by a fall of over 26%, since January 2020 immediately prior to the COVID-19 outbreak. Furthermore, it is worth noting there were 53,909 advertised for sale in January 2010, when this analysis began.
The total volume of properties advertised for sale in January 2023, represented just 0.8% of the overall total private housing stock.
According to Marian Finnegan, Managing Director, Sherry FitzGerald; “The imbalance between supply and demand remains the foremost obstacle facing the housing market. This is crystalised by the fact that in January, there was only 0.8% of stock available for sale nationwide and only 0.75% in the Dublin market. Such limited supply will inevitably put further upward pressure on prices in the months ahead.”
Notably, stock is particularly tight at lower price categories. Indeed, the sub €200,000 price category has seen the greatest contraction in supply with just 3,850 such properties available for sale across Ireland. This represents a fall of 49% in just three years.
The analysis highlights that all four provinces have seen significant depletions in the volume of stock available for sale since the start of 2020, with supply decreasing 37% in Connacht. While supply fell 36% in both Ulster and Munster over the three-year period. Leinster saw a decrease of 12%.
Rural Ireland has been most significantly impacted by falling supply. Roscommon and Kerry have seen the largest decreases, when compared to their pre-covid levels, 50% and 45% respectively. While Tipperary & Carlow both recording decreases of 42%.
Looking at the regional cities, supply levels are more varied. Cork city with 382 units advertised for sale, recording a 10% increase on January 2020. The second-hand stock available for sale in Galway city remains unchanged at 0.7% or 231 units, while Limerick city saw a reduction in supply of 4% bringing the available stock to 139 units.
The report also indicates that Dublin is the only county nationally that has seen an increase in stock available, when compared to January 2020, recording an improvement of 7% overall, bringing the stock available for sale to 3,945 units. The increase in stock varies across the four local authorities with Dun-Laoghaire Rathdown recording an increase of 12%, when compared to its pre-pandemic level, with Dublin City, South Dublin, and Fingal recording increases of 7%, 6% and 3% respectively.
In conclusion, Ms Finnegan said; “Historically low stock levels are simply another indicator of the dysfunctional nature of the market. What began as a challenge in key urban centres over a decade ago has by now become a nationwide affliction. In January 2010, there were just under 54,000 units advertised for sale nationwide. The collapse is supply in the intervening period, of just under 39,000 units has underpinned the upward pressure on prices and caused significant societal challenges. Such a shortage of stock will only be resolved by a notable increase in construction activity. At this juncture we need to be targeting over 52,000 new homes each year, double our current output levels.”
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For any further information, please contact:
Jill O’Neill, PR Director, Sherry FitzGerald Group. Ph: 01 237 6324 / 086 252 3277
Marian Finnegan, Managing Director, Residential & Advisory, Sherry FitzGerald Group. Ph: 01 237 6341 / 086 814 8251