Auctioneer Tom Crosse says prices in Limerick city and county have jumped a minimum of 10% since Christmas
HOUSE prices have risen 10% in the city and county since Christmas, according to a leading auctioneer.
GVM Group Property Director Tom Crosse said that is a “conservative figure”.
“Last year proved to be - even though we were closed for five months - as good as any since the crash in 2008,” he said.
It went against all trends as property prices were predicted to fall by up to 12%.
“I remember the Friday of Cheltenham in 2020 because four people rang me to withdraw their deposits on properties. The fears over Covid really escalated that week. By the following Wednesday we had shut the doors and a number of other people cancelled. The first lockdown was a proper lockdown with little or no activity or property translations. All the experts predicted property prices would fall,” said Mr Crosse.
When GVM reopened in June their phones - as did all auctioneers’ - started hopping.
“There was huge activity. I don’t buy into the view they saved money because they got support payments - that isn’t enough to buy a house. The fundamentals are that people are paying big rents; are anxious to get onto the property market and have their own house – that is the psyche in Ireland,” said Mr Crosse.
2021 started with a lockdown and January was slow, he said. But then the pent up demand exploded. “People started bidding on properties from videos and photographs. The market is very, very strong with multiple bidders on houses. At the end of May we were ahead of where we were in 2020 and that was the best year we have had since the crash.
“Prices in Limerick city and county have jumped a minimum of 10% since Christmas. New houses that were making €290k / €295k have now gone to €325k / €330k,” said Mr Crosse.
One story epitomises the interest that is out there. Mr Crosse was spotted coming out of a house he was inspecting. A man approached him; asked if the owners would sell it without it going to market and offered 10% over the asking price. The owners considered it over a few days and agreed.
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