58% of potential homebuyers have been able to save more money for a deposit during the pandemic, according to a new consumer sentiment survey by MyHome.ie.
The survey of 2,233 people found that homebuyers have largely been unaffected by the economic impact of Covid-19.
Speaking on Morning Ireland, Angela Keegan, Managing Director of MyHome.ie said that sentiment regarding house prices has shifted significantly since the summer.
"When we surveyed people following the first lockdown in May, almost seven in ten potential home buyers predicted that house prices would go down by more than 5%.
"In our recent survey which we conducted towards the end of November, that number is down to 22%, so just over two in ten potential buyers now believe that house prices are going to drop by more that 5%," she said.
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Despite this hardening of opinion on prices, 72% of respondents are planning on purchasing a property in the next year.
The survey also found that housing supply is still the biggest concern for potential homebuyers, Ms Keegan explained.
"The market was practically on ice for ten weeks during the first lockdown, and so 14,000 less second-hand homes have come to the market this year," she said.
"Even though we saw a pick up in activity when the lockdown ended, we didn't see a significant enough pick up to make up for that drop," she added.
Ms Keegan said that the slowdown in construction of new builds is also having a big impact.
"Last year, 21,000 new builds came to the market, while this year that figure is expected to be 16,000," she said.
"We have a lot less property available for sale and we have buyers getting mortgage approval earlier than they had expected due to increased savings, but they are coming into a market where there is absolutely a huge shortage of supply," she added.
While the Government has extended the Help to Buy Scheme for first time buyers, the survey found that three-quarters of respondents think the Government could do more to help them get a home.
Ms Keegan said she is surprised by this finding, which has remained consistent across the last three surveys.
"The Minister for Housing has extended the Help to Buy Scheme, but the research shows that potential buyers need more help.
"I think a number of schemes have been introduced to bring more property onto the market, but it will be a while before there is some easing of stock," she said.
The research also revealed that the pandemic has had a significant impact on the way in which people plan for home life.
"We always ask people what features they are looking for in a house and typically people want gardens, side entrances, garages and off street parking - but this time 46% of people said they wanted a home office," Ms Keegan said.
"Many of us are working from home due to Covid-19 and people are looking at how their lives will change in the future and what they are going to need from their home.
"A home has never been more important to people than it has been over the past few months during the pandemic," she said.
