Reflecting on the Waterford City & County Residential Property Market 2016 By Conor Purcell, Purcell Properties

With 2016 now behind us, I’ve had an opportunity to complete an analysis of sales throughout the city and county.

There are some notable changes (some for the better, some for the worse) in regards to the local property market.

Waterford City and County witnessed a total of 1,416 residential sales throughout the calendar year 2016.  This is a strong increase on 2015, to the tune of almost 240 extra residential sales.

According to daft.ie Waterford values appreciated throughout the year by approximately 17%.

I do not believe all residential property witnessed an increase to this degree. There is certainly a two tier market within the city and county in terms of demand, activity and sales.

When analysing the last quarter of 2016 there were a total of 390 residential sales, however it is important to break this down:

 

Price Range No. of Sales % of Market
€0 – €100,000 147 37.6%
€100,000 – €200,000 186 47.6%
€200,000 – €300,000 38 9.7%
Over €300,000 19 4.8%

 

The above clearly illustrates there is buoyant and active market, however in the region of 85% of all sales throughout the city and county are occurring at less than €200,000.

While I have not broken down in detail the figures for the €400,000 – €600,000 bracket there is very minimal activity at this price level.

The level of appreciation cited by daft.ie may well be applicable to the lower/middle end of the market (€50,000 – €250,000).

However there is a limited degree of appreciation in the middle and upper end (€250,000 – €600,000) of the market, this is borne out by the minimal level of sales.

 

Expectations for 2017

Supply continues to be a very serious problem and unfortunately it is anticipated this issue will continue.

There are a considerable number of potential vendors, however substantial negative equity and the inability to secure finance results in a considerable number of these potential sellers not bringing their property to the market.

 

I would hope that throughout 2017 and into 2018 continued appreciation in property values will help lift a reasonable proportion of these homeowners out of negative equity enabling them to trade up.

It is reasonable to assume the levels of demand will remain constant and potentially increase particularly with the lack of supply to feed the market and for those who are in a position to sell it is anticipated that sales will be achievable throughout 2017.