Good afternoon, it is February 17th 2021 and here is your economic and market update from BlackBee.
- Sherry Fitzgerald: number of homes available for sale in the State at lowest level in over a decade.
- GDP effect means Ireland will get less EU funding to recover from Covid-19.
According to estate agent Sherry Fitzgerald, the number of homes available for sale in the State is now at its lowest level in over a decade. The data was taken from property websites Daft.ie and MyHome.ie and Sherry Fitzgerald estimates that there were only 15,500 second-hand properties listed for sale in January this year. This is a 24% drop from January 2020 representing 4,850 fewer properties. Sherry Fitzgerald also stated that the supply of existing homes has been dropping at a rate of 10% per annum for majority of the last decade. The onset of the pandemic has accelerated the trend and the total volume of properties advertised for sale represents only 0.8% of the total private housing stock. Sherry Fitzgerald managing director Marian Finnegan said that “to put this into context, there were more properties for sale in Munster in 2010 than in the entire country today. Supply levels have fallen by 70% since the start of the decade”. (Source: Irish Times).
Due to the inflated size of the economy, Ireland will get less European Union funding to recover from Covid-19 than other member states. GDP is used as the measure and Finance Minister Paschal Donohoe said yesterday that Irelands growth rate in 2020 meant funding “isn’t of the scale that other countries will be using”. The government has been promised €853mn in a mixture of grants and loans from the EUs €672bn pandemic recovery fund. Allocations are based on growth rates, population and unemployment levels. Ireland was the only EU economy to expand last year with the EU average standing at -6.3% however GDP in Ireland is considered a poor measure of Irelands domestic economy. Irelands funding will be used in a targeted way concentrating on a number of particular areas or projects. The exact allocation Ireland will receive will be known when the EU releases final GDP data in June 2022. Mr Donohoe said that the government would continue to support businesses for quite some time and would give companies guidance regarding the continuation of the employment wage subsidy scheme “soon enough”. (Source: Irish Independent).
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Global Market Update
(as at close of markets 16/02/2021)