The rise in the cost of living is having a “major impact” on the home buying, renovation and rental markets, according to the latest report from MyHome.ie.
Almost half of the more than 2,800 people surveyed by the real estate website said the rising cost of living had affected their ability to buy property.
According to the report, demand is proving to be a critical factor that shows no signs of slowing down.
In July, brochure views on MyHome.ie increased by more than 40 per cent compared to the same month in previous years.
More than two-thirds of respondents said they have the financial means to buy a home in the coming year. However, not all willing believe that they will secure a property in this period.
According to the report, 54 percent of those ready to buy real estate believe they will be able to do so in the next year.
Sentiment among renters was described as particularly negative, with 63 per cent reporting that rising costs have impacted their ability to rent a property.
Three-quarters of the tenants surveyed also acknowledged that price concerns when looking for a rental property meant they had to look beyond their top location choice.
Although interest rates have risen recently, they are still relatively low and it remains to be seen how much of these increases will be passed on by banks
The cost of living crisis has also slowed home improvement, with 45pc reporting that the rising costs have impacted their ability to renovate or do other building work on their home.
However, the number of those who believe house prices will continue to rise next year fell in August.
Three in 10 people expect home prices to rise over the next 12 months, compared to nearly 60 percent who thought so in April.
“The rise in the cost of living is having a significant negative impact on consumer sentiment, but we know demand is still very resilient despite these financial pressures,” said MyHome.ie Managing Director Joanne Geary.
“Although interest rates have risen recently, they are still relatively low and it remains to be seen how much of these increases will be passed on by banks,” she added.
However, the ECB is now expected to hike lending rates twice by the end of the year, a move that will put both tracker and adjustable-rate mortgage holders under fresh financial pressure.
Due to the “lack of value, uncertainty and choice” in the rental market, Ms Geary has noticed a trend where those who are able to buy property are now doing so earlier than
otherwise they would have planned it.
“In many cases, if the stock were available to buy, it might just be cheaper to buy than rent,” she concluded.
https://www.independent.ie/irish-news/cost-of-living-crunch-is-affecting-property-market-sentiment-but-demand-remains-high-41943698.html The cost of living crisis is affecting property market sentiment, but demand remains high