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Unrealistic price expectations blocking house sales

Unrealistic house price expectations are blocking the sale of houses here, the Society of Chartered Surveyors Ireland said in its annual review of the property and outlook.

The society said this is the main factor in the houses failing to shift and comes ahead of issues around mortgages or house sales falling through because the intended buyer found another property.

The SCSI is forecasting house price growth of 4% this year, with Dublin prices rising by 5%.

It said that the owners of one and two bed apartments are likely to see the highest price growth this year, with estate agents predicting that one bed apartments will increase in value by 6%.

It also predicts that rents nationally will rise by 5% across all housing sectors, despite the 4% rent cap, with the highest increases for one and two bed apartments.

Landlords exiting the sector in all areas is ranked in the top three issues facing the market by 72% of respondents.

Aine Myler, SCSI Director General, said that while the market remains in good health, sales in 2018 were still taking just over five months to complete, and many were still falling through.

Ms Myler said that homeowners and prospective buyers alike are keen to make the sale happen and move into their next property.

Whilst we predict the continued house price growth in the average this year, there will be winners and losers. It is likely that the property market may correct for some high-value properties in Dublin in particular, "she added.

Ms Myler also said that in order to see the market operate efficiently, it needs a regular turnover of sales to help purchasers and sellers keep moving up and down the ladder.

"Potentially unrealistic asking prices can leave all parties disappointed, curtailing market movement when it's most needed and as affordability limits kick in," she added.

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