Half of Galway City’s home sales being done under pressure

 But the increase in volumes of homes being sold here comes at a cost – it’s estimated that as many as 50% of homes coming on the market in Galway are for sale because the vendor is under financial pressure.

And with many homeowners in negative equity of €70,000 to €100,000, people cannot afford to sell their properties.

According to Niall Browne, Residential Sales Manager with O’Donnellan & Joyce Auctioneers, it has now becomes the ‘norm’ for four or five parties to bid on each home, if it is a quality property.

And he said the Property Price Register website is the “best thing” to happen to the business, because it ensures transparency on selling prices.

“Our private treaty sales increased from 72 last year to around 110 so far in 2013 [up more than 50%]. Confidence is easing back again, and there is a shortage of good quality homes.

“People are fed up of waiting around for bargains – if there’s a bargain to be had, everyone is trying to get it. Take an apartment in Knocknacarra for €80,000 – you’ll have 15 to 20 people interested and ten of those will be serious about it.

“We’re seeing mainly families looking at the moment, and there’s a shortage of family homes. They’re looking in areas like Salthill, Knocknacarra, Renmore and even as far out as Roscam and Oranmore, and looking for detached in particular.

“If the asking price isn’t over-the-top, you’ll see four or five bidders on each property, more for the Salthill area which is very much sought-after.

Mr Browne explained that buyers’ and sellers’ personal circumstances are also changing.

“The real crux now is that some people have to sell, because their interest-only moratorium has passed. About 50% of sales are because of the financial situation which the vendor, and maybe around 10% due to separations. But there are also many, many people who want to sell, but can’t afford to because there’d be a €70,000 to €100,000 shortfall on the mortgage.”

Read more in today’s Connacht Sentinel