This article is from page 2 of the 2014-07-01 edition of The Clare People. OCR mistakes are to be expected so download the original SWF or the rendered page 2 JPG
ENNIS is facing a housing crisis over the next two years with the cost of family homes set to double – and with little or no development in the pipelines. The average cost of a three bedroom semi-detached house in Clare has risen by 30 per cent over the past 12 month – with Ennis, Shannon and Sixmilebridge driving the increases.
Indeed, according to figures compiled by the Real Estate Alliance (REA), the average cost of a three bedroom semi-detached house in Clare has risen by more then 13 per cent so far this year. With little or no construction of new developments in Ennis over the past four years, and few major developments at the planning stages, the current trend looks set to increase in the medium term.
According to Ennis auctioneer and REA Clare spokesperson, Liam Browne, the price increase is being driven by certain house types in certain areas – while prices in many parts of the county remain flat.
“We are seeing prices increasing in certain houses in certain urban areas, but the increase does not apply across the board. There has been a surge in sales over the past six months and that is definitely having an impact on prices – when houses do come up they are going well,” he said.
“More and more mortgages are being approved, but the houses are not coming on the market. You will see house shortages in the Ennis area over the next year or two, no houses have been built for the past four or five years. This will possibly see house prices continue to rise as there is a lack of supply.”
With the level of planning permis- sion in Clare still at a record low, it looks unlikely that a major increase in house supply can be realised in Ennis in over the next few years.
“Fundamentally it is going to create a shortage of certain kinds of homes in Ennis over the next 18 months or two years. If you go outside the urban areas like Ennis, Shannon and maybe Sixmilebridge – the market is still flat,” continued Liam.
“Any increase in house prices will help those people who are in negative equity, but whether it will get a large number of people out of their situation is not clear.”