Rising cost of living impacting would-be home-buyers
More than half of would-be home-buyers say that the rising cost of living is having a negative impact on their plans to purchase a property.
A new survey by property listing site MyHome.ie found that 52% of respondents said inflation was affecting their ability to purchase.
Consumer prices rose by 6.7% in the year to March, according to data from the Central Statistics Office last week, with energy prices seeing the most dramatic increase.
At the same time property prices have been rising sharply, with the cost of an average home up 14.8% in the year to January, according to the CSO.
Almost three-fifths of respondents to the MyHome survey believe property price increases will continue in the year ahead.
As a result, just 12% believe that the next 12 months represent a good time to buy.
Meanwhile rising property prices and dwindling disposable income has forced many would-be buyers to reign in their plans.
The MyHome survey found that 70% of respondents were having to look beyond their top location choice because of prices.
“The rise in the cost of living has been significant and is a source of worry for all people, so it is not surprising to see homebuyer sentiment negatively affected in this survey,” said MyHome.ie managing director Joanne Geary. “Our recent Property Price Report for Q1 2022 predicted buildings material inflation of 18% next year, which would most likely serve to put a brake on soaring market demand.
“This could be viewed as a positive result for the market, as we need to see demand easing in order to redress the imbalance between that demand and our chronic lack of supply.”