‘Vicious circle’ as Leitrim's supply of second-hand homes falls dramatically

Leitrim has the lowest amount of second-hand homes available on the market. 

The amount of second-hand homes has declined by 36% in Leinster in ten years.

This is according to new research by property portal MyHome.ie which shows that 285 second-hand homes were listed for sale in Leitrim in July 2014. 

This compares with only 122 properties available in Leitrim last month.

This downward trend is in evidence across the provinces over the last decade, with a 36% decline in Leinster, a 61% decline in Munster, and a 59% drop in Connacht plus the three border counties. Dublin has experienced a 19% drop in second-hand properties for sale since 2014.

The chronic shortage in supply is becoming more acute outside the capital city. In 2014, second-hand properties in Dublin represented 16% of all national stock on MyHome.ie. Last month, that figure had risen to 26%.

Of the 12,477 second-hand properties listed on MyHome.ie last month, 7,983 had an asking price of €450,000 or below, with 2,893 listed for between €450,000 and €800,000.

Managing Director of MyHome.ie, Joanne Geary said: “This analysis highlights the scale of the shortfall in second-hand properties in the last decade and emphasises the work that needs to be done to address the imbalance between supply and demand in the market. This trend is particularly concerning when one considers that, according to the CSO, the population of the country has grown by an average of 65,000 every year since 2016.”

She said it was unlikely that the fierce demand in the market would ease in the near term. 

“Ireland is experiencing strong economic tailwinds and full employment at present, with a significant increase in high earners recorded recently. Added to that, looser lending rules and demand-led Government initiatives such as the First Home Scheme and Help-to-Buy Scheme have also strengthened demand,” Ms Geary said.

“There is a vicious circle in the market at present, whereby those looking to trade up or down appear to have been spooked by the lack of stock available and are delaying a sale as a result, leading to an overall and consistent reduction in supply.”