Estate agents across the country are expecting house prices to stabilise this year, according to a report from the Society of Chartered Surveyors Ireland (SCSI).

The organisation’s survey found that estate agents expected residential-property prices to rise by 1% this year.

Almost two-thirds of respondents, however, believed that prices had already peaked, or were close to their peak.

“While price inflation has been dampened following the dramatic rise in interest rates, they have also been underpinned by the lack of supply,” said John O’Sullivan (chair of the SCSI’s Practice and Policy Committee).

Sales not proceeding

The SCSI’s Annual Residential Review and Outlook also highlighted an increase in the number of its agents reporting that sales were not proceeding.

The SCSI noted that more of its members were reporting “significant frustration” with delays within the probate process and in contacting the Probate Office.

The organisation said that agents also highlighted what they described as “an inefficient and lengthy” conveyancing process, and other issues, such as planning irregularities, non-compliance with building regulations, and boundary challenges.

‘Exodus of landlords continues’

The report also found that one in three of properties coming on the market were buy-to-lets.

On average, 36% of residential sales instructions to agents in the final quarter of 2023 were landlords selling their investment property.

While this is down four points from last year, O’Sullivan said that investors and landlords were continuing to exit the market in significant numbers.

“While new taxation measures announced by the Government in Budget 2024 aimed at encouraging landlords and investors to remain in the market are only being implemented now, SCSI agents are saying that the main reason rental units are continuing to come on the market in such numbers is that rent legislation is too complex and restrictive,” he added.