Auction prices for family homes were ‘way below’ sellers’ expectations

New Central Bank requirements for a 20% deposit appear to be having a significant ‘cooling’ effect on residential sales in Galway.

The rule – which does not affect first-time buyers – is one to watch, local auctioneer Colm O’Donnellan said, following a major auction at the weekend.

“There’s no question about it, now that ‘pre-approved’ mortgages have expired and the new rules are in effect, it is having an impact on the market,” he told Tribune Property.

Larger homes – for which there is generally significant demand in Galway City – sold for less than expected.

And first-time buyers were notable by their absence from the auction, which saw more than €3 million worth of residential and commercial properties sold.

However, there was a good turnout at the O’Donnellan & Joyce auction on Friday from cash buyers, although they were “slow to part with their money”.

The biggest residential sale on the day was a four-bed detached property in Knocknacarra, which achieved just under the €500,000 mark.

Mr O’Donnellan said: “It was the buyers’ day, because they were getting incredible value for money. A number of the buyers there were finding that family houses – which normally there’s huge demand for – there was a number of them that went way below expectations.

“Investors were also out, but a lot slower to part with their money than they have been at previous auctions.

“We found a lot of properties being sold just above the AMVs (Advised Minimum Values).

“Some of the sellers are going to be very disappointed, but the buyers will certainly be delighted with this auction.

“The demand for quality family homes remains very high in Galway city and county due to the popularity of the location and the lack of building in recent years. We had some stunning properties in fantastic addresses achieving great prices today,” said Mr O’Donnellan.

19 lots sold at the auction, while negotiations are continuing on five more (which failed to reach their reserve price) which are expected to be completed this week.

Properties close to the city centre included a two-bed apartment at Sáilín in Wellpark close to the G Hotel, which sold for €179,000, while a three-bed terraced house within walking distance of Eyre Square at Bohermore sold for €90,000.

A three-bed end-of-terrace house in Mervue, close to GMIT, sold for €162,000.

Other properties included a four-bed detached house at Westbrook for €375,000; and in the village of Barna, a four/six bed bungalow set in beautiful mature gardens at Forramoyle West, sold for €440,000.