Sales slow down as buyers wait for budget

WE’RE hearing a good bit about Government plans to “front load” the pain of the next four years with a killer budget in December. However, the reality is that property owners will have to brace themselves each year for an annual swipe at their wealth and this is likely to have an effect on property calender.

Already a pattern is emerging: a busy first two quarters followed by stagnation in the second half of the year, as the budget approaches. This year was just such a year, with good activity in the first six months, according to the latest survey on sales activity nationwide from the Irish Auctioneers Valuers Institute (IAVI). “IAVI members reported relatively strong levels of sales activity throughout the summer months,” says Simon Ensor, director of Sherry FitzGerald, who sits on the IAVI’s national council. Since then though, the survey notes a drop-off in activity in the third quarter, and this is borne out by anecdotal evidence of “very little happening” through September and October, traditionally busy months for house sales.

Lisney agrees in its latest market report which shows that although there was good “transactional activity” during the first eight months of the year, particularly for houses less than €1 million, in recent weeks it has become noticeably quieter. Lisney is putting it down to negative sentiment and says that “many potential purchasers have now stepped aside and are just watching the market.”

Oh dear.