Leitrim property supply expected to tighten in 2017

Claire McGovern

Reporter:

Claire McGovern

Leitrim property supply expected to tighten in 2017

A local auctioneer has predicted that there will be an undersupply of houses in 2017 especially in the Carrick-on-Shannon area.
Joe Brady of REA Brady told the paper “2016 was the year where the recovery took hold with many of the un-finished and un-used properties finding buyers and in the end, occupiers.
“The tide has very much turned from an oversupply to an impending under-supply situation within a short space of time.
“Rents have risen significantly too (from a low base) and getting a home to buy or rent in South Leitrim and the Carrick-on-Shannon area is not just that simple any more.
“In all instances REA Brady report that they have multiple buyers-tenants for their properties.
“That being said there is still a lot of value in the market with some homes still selling below the cost of construction.”
Joe sees these “value buys” being consumed quickly and prices increasing by as much as 1% per month (12% per annum). He sees this trend continuing until homes get to at least the cost of construction. When that assumption is applied that puts three bed homes of c. 1050 Sq. ft rising in value to €160,000 and moderate four bed detached homes of 1800 Sq. ft. hitting €250,000.
“So, at least for now it’s still cheaper to buy than to build. With that pace of increase, if you’re thinking of buying in 2017, you’d best get your skates on,” he concluded.