Good afternoon, it is January 18th 2021 and here is your economic and market update from BlackBee.
- Irish Residential Property Prices forecast to climb 4% in 2021.
- PUP claims climb 15% in the last week.
According to a survey of chartered surveyors, Irish residential property prices are forecast to rise by 4% in 2021. Prices remained resilient when Covid-19 took hold last year and the forecasted increase in prices this year is again due to supply shortages. With the onset of the pandemic last year, many thought that house prices would fall as economic activity took a hit due to imposed lockdowns and unemployment sharply rose. Market activity significantly slowed in the first half of the year as construction activity also came to a halt however activity significantly increased in the second half of the year. Prices remained resilient as the stall in construction activity was compounded by an already scarce supply. According to MyHome.ie, asking prices for houses climbed 6% last year. (Source: Irish Times).
In the last week, the number of people receiving the Pandemic Unemployment Payment has climbed 15.7%. This is a rise of 62,715 as 460,000 people will receive the PUP this week. The reintroduction of tighter public health restrictions is likely the driving force behind this increase. The construction sector saw the highest weekly increase as it climbed nearly 75% bringing the total figure to 56,217, up from 32,152. Again, this is likely due to the tighter restrictions as non-essential sites closed on the 9th January. Despite the climb in the number of people receiving the PUP, it still remains below the peak figure of 600,000 claims in May. The PUP scheme has cost the state over €5.2 billion since it began in March. This weeks PUP cost is €138 million. (Source: RTE).
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(as at close of markets 15/01/2021)