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Prospective homeowners advised to buy soon

Prospective homeowners hoping for further price drops before entering the property market in Sligo have been warned not to wait too long.

Since the collapse of the property market, house prices in many areas of Sligo have fallen by 30 to 40%. With interest rates at an all time low, it’s unsurprising that local estate agents have reported an upsurge in business in recent months.

Shane Flanagan, of DNG Flanagan Ford, noted that post-Celtic Tiger house buyers are extremely cautious. “The difficulty is giving people confidence that they are getting good value. A lot of people are very wary of the market & unless they feel that they’re getting good value then they’re not moving, but we’re getting a very good response.”

For those young couples waiting until the market bottoms out before buying their dream home, Mr Flanagan has a word of warning. “It’s impossible to know. We’ll only know when the market has bottomed out when the market starts to rise again. The people who are waiting for it to bottom out are unlikely to get it when it bottoms out. It will have already started to rise again.”

For those lucky enough to have secured mortgage approval in these difficult times, Mr Flanagan, who has decades of experience in the local property market, advises that now could be the perfect time to buy. “We did a little exercise recently where we took a house that was priced at €320,000 two years ago. The exact same house is €200,000 today. A 92% mortgage on that house two years ago was over €1,500 per month. The exact same 92% on €200,000 is less than €600 per month today. That’s not only due to a reduced price, but the fall in interest rates. There have been massive cuts in interest rates. That’s why people are moving on property, when the prices are perceived to be good they are prepared to invest.”

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