Good afternoon, it is December 4th 2020 and here is your economic and market update from BlackBee.
- Housing supply a main concern in MyHomes.ie survey.
- Public finances record a deficit of €8.9 billion in November.
A survey conducted by myhome.ie shows that 58% of potential homebuyers have been able to save more money for a deposit as a result of the pandemic. When the pandemic originally hit, the sentiment of prospective home buyers was that prices would fall by over 5% over the next year. In May, 68% of potential homebuyers were expecting this fall, however, only 22% believe this will happen now, demonstrating a significant change in sentiment. More than 7 in 10 prospective buyers are planning on purchasing a property in the next year. The survey also showed that housing supply is still the main concern with 42% of respondents stating that they would be encouraged to buy a house if the available stock increased. 76% of respondents believe that the government could do more to help the property sector. Angela Keegan of MyHome.ie said that “supply issues are still a huge concern due to the suspension of construction activity during the first lockdown” and that their analysis “shows that stock levels are down 27% year on year which is particularly concerning”. (Source: Irish Times).
According to the latest exchequer figures, public finances recorded a deficit of €8.9 billion in November. In the same month last year Ireland’s public finances recorded a surplus of €3.355 billion. The deterioration of public finances is largely due to an increase in expenditure in the areas of health and social protection in response to the pandemic. In comparison to the same month last year, government expenditure was up 23.7% (€11.4 billion) and cumulative tax receipts were down 6.9% (€3.761 billion). November is typically the biggest month for tax receipts. Income tax receipts are down over €1 billion mainly because of the “pay and file” deadline for the self-employed being extended. PAYE receipts were described as holding up remarkably well according to the Minister for Finance Paschal Donohoe. Take up for the Covid Restrictions support scheme was suggested to be low, as there was a return of €430 million of the €550 million set aside for the scheme. VAT receipts are down 17.7% in the year to the end of November compared to last year showing that less money is being spent in the economy. (Source: RTE)
To read the Irish Examiner’s write up on Aperee’s acquisition of Havenwood Retirement Village, follow this link.
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Global Market Update
(as at close of markets 03/12/2020)