Appleton Property – 2017 in Review
On the property front in Kilcullen the market began in a similar way as in the previous three years. Demand for housing continued to outstrip supply. More people were looking to buy houses than there were houses available. As with any other commodity, when demand is greater than supply, prices rise. Differing from the previous three years, prices grew at a slower level in the second half of the year.
This was similar to the market performance nationally according to the daft.ie 2017 Housing Report. The main property online advertising group reported a year of two halves with growth in the first half of the year at 8.8% nationally and much lower growth reported in the second half of the year. The expectation is that prices will move forward again in the first half of 2018.
Without getting too technical, the lower level of price increase in the second half of the year is in part due to the stringent regulations on mortgage lending. The regulations limit the amount a person can borrow to a multiple of their income and takes their other loans and expenses into consideration. The intention of the Mortgage Credit Directive was to limit house price growth and it has had that effect, and as usual with market interventions, some unintended consequences. One such unintended consequence was that the majority of buyers entered the market in the first half of 2017 having secured their mortgage early in the year. It appears this will be replicated in 2018.
Interestingly, we found the level of interest and the rate of increase in the price of country homes in the areas surrounding Kilcullen to be higher than in previous years. There was certainly more activity in the higher end of the market in the area with more viewers, more offers and higher results than in the previous three years. Well built, well maintained, attractive country homes were in high demand and we expect that to continue to be the case in 2018.
So who is actually buying property in Kilcullen? In 2017 we had quite a mix of potential purchasers. We had a large proportion of people who are currently living in the town or have a strong association with Kilcullen looking to buy homes. By contrast we had people who are vaguely familiar with the area and those who have literally come to Kilcullen for the first time to look at a house. There are also a significant percentage of investors in the market at any time. It is often the case that those who know the area out bid those who don’t know the area. This is not necessarily because they have more resources. Local people simply know the town better and are aware of the convenience of it and the quality of life achievable in Kilcullen. They put more value on this than others might. Buyer don’t just buy the house, they buy into the town and the lifestyle it offers. Every town is different. Life in Naas is quite different to life in Kilcullen and different again from life in Athy and so on.
It is very important to us as Estate Agents in the town that we ensure all those viewing houses are made aware of the facilities in our lovely town and advised to take a walk, have a coffee and speak to local people. We never do open viewings on residential property for this reason. We need to speak to every buyer and understand their needs.
And what lies ahead for 2018? Immediately after Christmas the market is usually slow to start. This year that has not been the case. We had an unprecedented level of activity immediately after Christmas and hundreds of emails to trawl through when we returned to the office. In my opinion the first half of 2018 will be very strong. I would advise those selling to get in early and get your property on the market while there is less competition and plenty of buyers. I would advise those buying that once they see what they want not to delay. If you like it then make a genuine effort to buy it. If you like it, it is likely that someone else will like it too. The early bird gets the worm.
For those who are interested we have a feature on our Face Book Page showcasing many of the sales we conducted in 2017. This feature will continue throughout January and all properties are visible on our page. Like our FB page for regular relevant updates on the local market.
We are available anytime, day or evening, to provide a Free Valuation of your property. Check out our website for details of our services. www.appleton.ie
Austin Egan is owner/manager of Appleton Property Kilcullen. Austin is a member of the Institute of Professional Auctioneers and Valuers and is also a Recognised European Valuer.
