DNG Maxwell Heaslip and Leonard have begun a major drive for properties to list in order to meet “ever increasing demand” in the Galway property market.
Recent sales results with the city-based agency have seen an increase in demand with sales turnover for the first quarter of 2013 up 22 per cent on the same period last year. The sizeable increase in turnover can be accredited to a number of factors including favourable house prices and more readily available finance, but director James Heaslip believes there is a real “supply and demand” issue at present.
“Since the beginning of the year, we have had problems trying to provide properties for the growing numbers of buyers out there at the moment. Up until recently, first time buyers had been the driving force in the market, but we are now seeing a steady return to the market of those looking to trade up and buyer bigger homes,” he explained.
“It’s also apparent that the investor is well and truly back in the market and they are taking advantage of the excellent value and attractive rental yields available at present.”
Mr Heaslip said that this trend was particularly obvious in Dublin at present and while price increases are not on the levels of the last property boom, they are still going up.
“The telling signs here are all the same as Dublin, and indications are that Galway will follow suit as it has traditionally done since the early 1990s,” he added.
Some leading experts are predicting a levelling (and in some cases, even an increase) of house prices in Galway and the team in DNG Maxwell Heaslip & Leonard claim that they are getting results to back this speculation up.
“Last week, for example, we agreed sales on three semi-detached homes on the outskirts of the city and in each one, we ended up achieving significantly higher prices than expected,” he continued.
“In one particular case in Knocknacarra, we achieved a price that was 16 per cent higher than the guided AMV and while the property in question was of the highest quality, this result is indicative of current price trends across the city.”
While auctions continue to produced excellent sales figures, the real gauge of the market can be found on private treaty sales and the Francis Street based firm are now in a position where they urgently require stock to meet the demands of the many buyers the have on their books right now.
Mr Heaslip said that the fact that there hadn’t been any new houses built in the past six years was now causing a “clear shortage of homes available to an under supplied market”.
“As letting agents, we have over 400 properties which we manage for our clients and at present, we have a 98.5 per cent occupancy rate and it has been this for the past twelve months. Rents are creeping back up, due to the lack of availability, and the indications are that many renters feel it makes more sense to now buy rather than rent.”
To talk to one of the residential sales team, call DNG Maxwell Heaslip and Leonard at 091-565261.