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Renters Paying Twice as much as paying mortgages26 September 2017

Renters are moving home to their parents in ever-increasing numbers in an effort to get on the property ladder, according to a national group of estate agents.

With rents exceeding average monthly mortgage costs around the country, tenants are finding that the only way they can raise finance is to abandon independent living in the short term and return home.

“It is increasingly difficult for first-time buyers to save deposits and purchase properties due to the combination of high rental and childcare costs,” said Anthony McGee of REA McGee in Dublin 24.

“There are lots of instances where we are seeing people moving home to parents to save deposits.

“Even though the rents they are paying are in excess of a mortgage on the same property, they can’t seem to attain a mortgage due to their inability to raise money for a deposit.”

The rental market is being squeezed ever upwards by a perfect storm caused by tenants renting on a much longer basis according to REA spokesperson Healy Hynes.

“Tenants traditionally moved around in the hunt for better and cheaper accommodation, but this is no longer the case, and tenancies are becoming much longer,” said Hynes, a specialist in the area.

“This means that there are less rental properties on the market, and those that come up are very often being converted to Airbnb usage.

“All of this has heated a rental market where average rents nationwide are now €1,017.15, having risen 2.8% in the past quarter.

“In contrast, the cost of servicing a €200,000 25-year mortgage on the REA Average Three-Bed Semi price of €221,843 would be €969 at current rates.

“This difference is made even starker when you consider that the average rental price is based mostly on two-bedroomed apartments, not three-bed semi-detached houses which obviously command a higher rent.

“Although 60% of rental properties in the country are now covered by rent pressure zones, they are simply a fire-fighting exercise as it will be 2020 before we can evern hope to see a sufficient supply of new homes coming on to the market.

Dublin agent Ed Dempsey believes that the rental market is a huge problem in Dublin, fuelled by the migration of properties in the capital to Airbnb.

“There are currently 3,000 properties available to rent on Airbnb that would otherwise be in the rental sector. In contrast, there are just 1,000 properties available to rent on the long-term market,” said Dempsey.

REA agents in Balbriggan are finding that in some cases prospective buyers can halve what they are paying rent if they purchase a property in the area.

“If renters can obtain mortgages they are willing to buy sooner rather than later, as in many cases they are halving their rental payments,” said John Cumisky from REA Cumisky.

“Rents have gone through the roof in the area fuelled by an all-time low of supply of suitable rental properties, with many prospective buyers trying to escape from rents of €2,000 a month in Dublin.”

In commuter areas, buying is still far preferable to renting according to Brian Farrell of REA Brophy Farrell in Naas.

“Assuming that an average house priced at €260,000 in Naas will rent for €1,500 per month, a mortgage of 90% loan to value (LTV) will cost 75% of that amount to service, at €1,132 per month.

“When you factor in the cost of mortgage protection insurance, house insurance, property taxes and general repairs and maintenance these figures work out at a similar amount on a month to month basis.”

The traditional investor who buys a three-bed semi and rents it out appears to be retreating from the market on a monthly basis to be replaced by the ‘Air Investor’ according to Robert McGreal of REA McGreal Burke in Castlebar.

“If we take Westport, for example, there are 14 properties listed to rent, 166 for sale, but 250 listed as currently available on Airbnb,” said the Mayo auctioneer.

In Tipperary a significant number of renters, mainly people who have settled in the area over a long term from Eastern Europe, are now opting for the security of home ownership.

“This category of buyer now makes up 50% of our three-bed semi sales. Many of them have substantial savings and recognise that mortgage payments are now significantly less than the rent that they are currently paying,” said Eoin Dillon of REA Dillon in Nenagh.


Ends

Available for interview:
Healy Hynes, REA spokesperson
healy@hynes.ie 087 263 2295
Media information: Darren Hughes, 086 293 7037, Darren@mediaconsult.ie





Q3 2017 REA Average House Price Survey25 September 2017

The average three bed semi-detached house nationally has risen by 3.1% to €221,843 since June, the Q3 REA Average House Price Survey has found.
The REA Average House Price Survey concentrates on the up-to-date actual sale price of Ireland's typical stock home, the three-bed semi, giving a real-time picture of the property market in towns and cities countrywide to the close of last week.
Overall, the average house price across the country has risen by 11.2% over the past 12 months – just under twice the 6% increase registered to the full year to September 2016.
The average three-bed semi-detached home in Dublin city’s postcode districts has jumped in value by €17,000 in the three months to the end of September, and now costs an average of €431,500.
The 4.1% rise over the last quarter means that prices in the capital’s postcode areas have increased by 15.6% over the past year, with properties selling in an average of four weeks after hitting the market.
“Supply is the main driver of these continuing price rises with our agents reporting that the volume of listings is down around the country,” said REA spokesperson Healy Hynes.
"In what is becoming a vicious circle, families looking to trade up are not seeing the larger homes becoming available while empty nesters looking to downsize do not have a ready supply of smaller homes emerging on the market.
“To complete the equation, first-time buyers are not seeing the three-bed semis coming through in sufficient numbers.
“Although planning permissions rose by 55% year-on-year in Q2, the 3,630 houses approved will not be on the market for the next two years, and even then this year’s overall figure will be less than half is what is required on an annual basis.
“Looking at the supply figures, it could be 2020 before we see any normalisation in the marketplace.
“Our agents are reporting that where there are new builds coming on stream, the market is extremely active and the first-time buyer is opting to pay a premium of 15-20% higher than the second-hand rate.
“This is having a knock-on effect into the second-hand market with a more discerning buyer now concentrating heavily on energy ratings.
“Where the price is right, we are seeing a good flow of credit into the market, with cash buyers now just making up 20% of the commuter market and sales in Dublin and surrounding counties closing in just four weeks – down from an average of seven a year ago.”
The commuter counties continued to rebound after a relatively static 2016 and saw an increase of 2.7% this quarter, with the average house now selling for €229,300.
However, once again the influence of house pricing relative to the deposit threshold is illustrated in a 4.7% rise in Meath where the average is €234,375 almost twice the percentage increase registered in Kildare (1.8%) and Wicklow (2.4%) where average house prices are above the €260,000 mark.
The commuter flight has once again spread as far as Laois where REA Seamus Browne reports a €10,000 increase in average prices over the past three months as buyers leave Dublin and Kildare in the quest for suitable housing at the right price.
The slowest growth nationwide was registered in the main cities outside of Dublin, as while Galway at €255,000 (up 4.1%) and Limerick at €190,000 (up 2.7%) showed growth, Cork city prices remained static over the three-month period, and just 5.1% up on the year.
The country’s smaller rural towns situated outside of Dublin, the commuter belt and the major cities out-performed the national index with prices rising by an average of 2.8% over the quarter to €142,867.
House prices in Longford have risen by 32% in the past year – but the county still has the cheapest semi-detached houses in the country at an average of €90,000, up from €68,000 in September 2016.
Longford, Leitrim (€97,000) and Donegal (€93,750) are the three counties where properties can be still be purchased for a five-figure sum.
Despite the absence of sterling buyers because of Brexit and the exchange rate, prices in some parts of Donegal have risen by an average of €6,250 since June, fuelled by an acute lack of supply of suitable properties.
Brexit is having an unusual effect on the rental market in West Cork where former sterling buyers are now opting to rent on a long-term basis, creating added pressure on an under-supplied market, according to REA Celtic Properties.

Ends

Available for interview:  
Healy Hynes, REA spokesperson, healy@hynes.ie, 087 263 2295
Media information: Darren Hughes, 086 293 7037, Darren@mediaconsult.ie

Q2 Average House Prices 201726 June 2017

The price of an average house in Dublin rose by 2.6% in the second quarter of this year with three-bed semis in the capital now taking as little as three weeks to sell.
The average three-bed semi-detached in Dublin city now costs €414,500, a rise of €10,000 (2.6%) over the last three months and an increase of 14.1% over the past year, the Q2 REA Average House Price Index has found.
And REA agents in areas of south Dublin such as Tallaght, Clonskeagh and Dun Laoghaire are reporting that properties which took seven weeks to sell a year ago, are now moving to sale agreed in 21 days.
The REA Average House Price Survey concentrates on the actual sale price of Ireland's typical stock home, the three-bed semi, giving an up-to-date picture of the property market in towns and cities countrywide.
The average semi-detached house nationally now costs €215,269, the Q2 REA Average House Price Survey has found – a rise of 2.5% on the Q1 figure of €209,944.
Overall, the average house price across the country has risen by 11.2% over the past 12 months – in contrast to the 4.5% increase registered to the full year to June 2016.
While new building is still in its infancy, new developments on sale in small pockets of the country have had an impact on the price and demand for second-hand properties locally.

Agents have been reporting that where there are new homes available, the price of second-hand properties has been under pressure,” said REA spokesperson Healy Hynes.

“Most of our national housing stock is over a decade old, and house purchasers – especially first-time buyers – will opt for new builds at a higher spec, even if there is a marked difference in price.  

“Our agents are also reporting that both purchasers and three-bed semi vendors are looking for larger homes, which is having an adverse effect on the supply chain, with the result that time taken to sell is now four weeks on average in Dublin and the major cities, and as low as three in some parts of the capital.

The commuter counties Louth, Meath, Kildare, Wicklow, Carlow and Laois continued to rebound after a relatively static end to 2016 and saw an increase of 2.6% in the quarter, with the average house now selling for €223,267.

Prices in the major cities of Cork, Galway, Limerick and Waterford rose by 1.9% in Q2 and 9% on the year, the survey found.

The average three-bed semi now costs €311,000 in Cork (+2%), €245,000 in Galway (+2.1%) and €185,000 in Limerick (+3.9%) and Waterford €190,000 (0%) with first-time buyers opting for new homes as the reason for static pricing in the latter location.

The biggest percentage increases over the past three months came in the country’s smaller rural towns situated outside of Dublin, the commuter belt and the major cities.
Prices here rose by an average of 2.8% over the quarter, with a three-bed semi now costing €138,183 on average – a rise of 12.3% over the past year.

However, uncertainty over Brexit has resulted in a significant downturn in turnover for agents in some border areas.

Prices for three bed semis have remained at €85,000 in South Donegal for the past three quarters, but this masks a huge drop off in business from the North according to REA McElhinney in Bundoran.

“There is an overall hit to confidence and to people’s willingness to make a major financial commitment to property while there is uncertainty over the border,” said Michael McElhinney

Ends

Available for interview:
Healy Hynes, REA spokesperson and auctioneer
healy@hynes.ie 087 263 2295
Media information: Darren Hughes, 086 293 7037, Darren@mediaconsult.ie



REA Rental Report (Dublin)06 June 2017

95% of renters in the Dublin area aspire to own their own home, a survey of over 300 tenants in the capital has revealed.

However, 37% of the 300 respondents do not see their ambition being achieved within the next five years, according to the survey carried out by Real Estate Alliance for the Irish Independent.

Only 15% of renters in the capital are actively planning a property purchase in the next year with a further 18% stating that they envisage buying within two years.

48% of tenants cite a lack of funds for a deposit as the main reason why they cannot buy a home, with 29% identifying low earnings as the prime reason.

34% of renters say that the most important factor preventing home purchase is a combination of deposit restrictions, lack of earnings and negative equity.

The attraction of a rent to buy scheme to aid house purchasing was brought into sharp focus when an overwhelming 81% of respondents said they would move into their ideal home today, within a commutable distance of Dublin, if they could rent it for a few years before buying.

Rental certainty over a five-year period was the most important factor in making such a scheme work, with 81% of people being prepared to pay a deposit to secure the right to buy after five years.

However, only 32% of current renters said that they could afford a deposit of over €5,000 for such a purpose.

“This survey is a resounding statement that long-term rental is not what people want,” said REA spokesperson Healy Hynes.

"Much has been made in the population figures of a shift from home ownership to rental. However, this is a response to the housing supply issue rather than a lifestyle decision.

“Despite a demographic change towards families renting, it is clear that it is not their desired long-term solution.

“The fact that 37% of renters feel that they will not own a home within five years shows how the odds are stacked against them in the current climate where it is cheaper to pay a mortgage than to rent.

“A person looking to buy a house at €250,000 must raise a deposit of at least €25,000, leaving them with a mortgage of €225,000, at average monthly repayments of €1,000.

"This repayment is about €500 cheaper than the average rent being paid by our respondents, meaning that they could save €6,000 per year by purchasing a house.

“However, the survey shows that the average renter can only raise a €5,000 deposit at most, and has few options left to raise the lump sum required or meet the income level requirements under current legislation.

“The survey also clearly shows an appetite for rent-to-buy schemes which would help to ease the path into home ownership.”

Renting is increasingly the choice of couples with 57% of all renters in the capital either married (14%) or living with a partner (43%), with 43% single and 22% of renters having children.

The survey showed the majority of respondents living in South Dublin (35%) and the city centre (29%), indicating that people may be renting where they want to eventually live, but are hamstrung by house prices and lending restrictions.

52% of Dublin renters are paying over €1,300 per month for their property, with 27% in the band between €1,300 and €1,500 and a further 14% paying between €1,500 and €1,750.

Over two thirds of Dublin rental households earn more than €40,000 with over a third (36%) earning over €60,000 - an income that would previously have gained the holder entrance into the housing market at some level.

Transport, amenities, parking, security and securing a new property all figured low on the priorities of Dublin’s renters, with location (43%) and price (40%) being the main drivers when choosing a property to rent.

91% of the respondents are between the ages of 25-44, with just 4% of renters under 25.

Tenants rate the ability to move again if their circumstances change and the fact that they are not responsible for maintenance as the two greatest attractions about renting.

However, one third (33%) feel that rent is wasted money with 32% feeling that they are missing out on owning their own home as property prices keep rising.


Ends

Rental Survey revealed in the Indo05 June 2017

The true extent of how Ireland's rental trap has snared aspiring homeowners is revealed today as just 15pc of current renters believe they can acquire a home within the next year.
More than a third now believe it will be more than five years before they can manage to get on the property ladder.
This is even despite the fact that almost all renters are determined to get out of rental accommodation and to own their own home eventually (95pc), with just 5pc resigned to remaining in rental forever.

However, less than one third of current renters said that they could afford a deposit of more than €5,000. This compares with a deposit on an average new home in the capital which currently stands at €30,000 or higher.
The rental survey published today was commissioned by the Irish Independent through the Real Estate Alliance (REA) and taken from the opinions of more than 300 people currently renting in Dublin.

It shows that many are stuck unwillingly in rental accommodation even despite earning high salaries - more than a third of current renters are earning in excess of €60,000 per annum.
Renting is increasingly the lot of couples, with 57pc of all renters in the capital either married or living with a partner.
Renting is increasingly the lot of couples, with 57pc of all renters in the capital either married or living with a partner. Stock image
Two thirds (66.3pc) are earning more than €40,000, an income that in previous times would have got them on the housing ladder. However, in a 'Catch 22' situation, their saving abilities are being hampered by soaring rents.

Read More: A 'Rent to Buy' scheme could be a happy halfway house and give families security
More than half are now shelling out more than €1,300 per month in rent, with 27pc in the band between €1,300 and €1,500 and a further 14pc paying between €1,500 and €1,750.

And in a break with the Irish tradition of starting a family in the first-bought home, it emerges that 22.5pc of renters already have children.
Renting is increasingly the lot of couples, with 57pc of all renters in the capital either married or living with a partner.

Deposits are seen as the biggest obstacle, with almost half (48pc) citing the lack of funds for a deposit as a key barrier. After deposits, 29pc cite their earnings falling short as the main reason.
And an indicator of a possible solution to their woes might come in the form of a 'rent to buy' scheme, with an overwhelming 81pc of renters saying they would move into their ideal home today, within a commutable distance of Dublin, if they could rent the property for a few years before buying.

Rental certainty over a five-year period was the most important factor in making such a scheme work, with most people being prepared to pay a deposit to secure the right to buy after five years.
"This survey is a resounding statement that long-term rental is not what people want," said REA spokesperson Healy Hynes (right).

"Despite a demographic change towards families renting, it is clear it is not their desired long-term solution. Much has been made in the population figures of a shift from home ownership to rental. However, this is a response to the housing supply issue rather than a lifestyle decision," he said. "The fact that 37pc of renters feel they will not own a home within five years shows how the odds are stacked against them in the current climate where it is cheaper to pay a mortgage than to rent."
A person looking to buy a house at €250,000 (among the very cheapest in Dublin) must raise a deposit of at least €25,000, leaving them with a mortgage of €225,000 and average monthly repayments of €1,000.

However, this repayment is about €500 cheaper than the average rent being paid by the survey's respondents, meaning that they could save €6,000 per year by purchasing a house.

The majority of respondents are living in South Dublin (35pc) and the city centre (29pc), indicating that people may be renting where they want to eventually live, but are hamstrung by house prices and lending restrictions.
What was traditionally a large core of renters of student age is evaporating fast as those under 25 cannot afford to rent at all. The largest age group was in the 25 to 35 bracket (68pc) while there are also indications that the renting population is aging as more people remain priced out - 28pc are now 35 or older.

Tenants rate the ability to move again if their circumstances change and the fact that they are not responsible for maintenance as the two greatest attractions about renting.

However, one third feel that rent is wasted money.

REA hit a home run with US Property Show in Boston06 April 2017

US-based buying interest in Ireland is gathering pace, according to Real Estate Alliance who held Boston’s first Irish Property Show last week.

REA Chairman Eamonn Spratt was among those who brought local properties to a US market that now forms one in five overseas enquiries for Irish property.

“A strong dollar and the lure of a resurgent economy for emigrants has seen US property buyers flocking to secure homes and investment properties in Ireland in recent months,” said Eamonn.

“We saw many Irish families looking to return home, retirees looking to downsize, and young Irish people who were returning home to work.

“Enquiries from the US increased by 25% over the past year, signalling a major return of emigrants who feel that the time is right to move back to Ireland.

“We had a high number of enquiries from siblings looking to group together to buy property in Ireland, as well as people interested in investment and holiday properties.”

This was the second successful US business trip for REA, who held an event in New York last year, and is part of an overall plan to reach out to overseas buyers who represent an important market for Irish property.

“As part of our overall strategy to build up a network in the US, and engage with American purchasers, we also met with a number of buyer agents over the course of the week,” said Eamonn.

“Over the three days in Boston we met with many pre-registered buyers, buyer agents, investors, lawyers and Real Estate Investment Trusts (REITs).

“We expect many of those conversations to very quickly convert into sales with a number of customers planning to talk further over the next two months and inspection trips already planned for specific properties.
“The average house price in the US in November 2016 was $365,200 (€341,739), compared to our Average House Price survey national value of $216,856 (€202,926) at the same time, so there is obvious value for American buyers in Ireland.

“Education costs in America compared to Ireland were a constant topic in our conversations with potential buyers at the show.

“As children grow towards college age, parents in the US may be facing costs of approximately $60,000 per year, with even secondary education costing a minimum of $15,000 per annum.”


Real Estate Alliance (REA) is Ireland’s leading property group of
Chartered Surveyors with over 55 branches nationwide, comprising many of the country’s longest-established auctioneers and estate agents.

To register to list with REA and be included in ongoing promotions to the US see www.realestatealliance.ie/Boston

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For further information: Eimer O'Keeffe, Marketing Manager, REA, 086 8249040, eimer@rea.ie

Media enquiries:
Darren Hughes, MediaConsult, darren@mediaconsult.ie, 086 293 7037


Picture enclosed:
Sample caption:
***NO REPRO FEE*** REA members hit a home run with their US Property Show in Boston last week. Pictured at Boston Red Sox home field at Fenway Park is REA Chairman Eamonn Spratt with a group of REA agents who attended the show in the Lenox Hotel Boston

Q1 2017 Average House Price Survey27 March 2017

The price of an average house in Dublin rose by 3.9% in the first quarter of this year as the average three-bed semi in the capital breached the €400,000 barrier.
The average three-bed semi-detached in Dublin city now costs €404,167, a rise of €15,000 (3.9%) in the last three months and an increase of 12.8% over the past year, the Q1 REA Average House Price Index has found.
And with an increase in newly-financed buyers coming to the market, prices rose by 5.6% in both north and south county Dublin in the first three months of the year.
The easing of the Central Bank restriction on lending for first-time buyers has had an immediate effect on the market with a large rise in numbers at viewings and potential buyers with mortgage financing.
The REA Average House Price Survey concentrates on the actual sale price of Ireland's typical stock home, the three-bed semi, giving an up-to-date picture of the property market in towns and cities countrywide for the first three months of the year.
The average semi-detached house nationally now costs €209,944, the Q1 REA Average House Price Survey has found – a rise of 3.5% on the Q4 2016 figure of €202,926.
Overall, the average house price across the country has risen by 10.9% over the past 12 months – a marked increase on the 7.7% rise registered to the end of December 2016.
The biggest percentage increases over the past year came in the country’s smaller rural towns situated outside of Dublin, the commuter belt and the major cities.
Prices here rose by an average of 12.9% over the year, with a three-bed semi now costing €136,194 – an increase of 3% in the past three months.
The commuter counties of Louth, Meath, Kildare, Wicklow, Carlow and Laois rebounded after a relatively static end to 2016 to rise by 2.9% in the past three months, with the average house appreciating by over €6,000 in the quarter.
Ireland’s major cities outside the capital experienced a 2.3% rise in the first quarter and 7.7% on the year, with the average semi now costing €305,000 in Cork (+3.4%), €132,000 in Galway (+2.1%) and €178,000 in Limerick (+0.6%).
“There has been a recovery in bank lending, which has been reflected in the purchasing end, but the accelerated figures in the Dublin market particularly, show that we are moving into a vendors’ marketplace,” said REA spokesperson Healy Hynes.
“Many private vendors are now emerging from negative equity and can afford to make the move from the starter to the second home.
“However, we need to look at these figures in relation to the market where stock levels are at their lowest nationwide since January 2007.
“Although mortgage drawdowns at 29,498, were up 12% in Q4 2016, they were actually less than they were in 1980 when the economy was in deep recession.
“At a current average price of €136,194, and an annual compound rise of 12.9%, it will be 2021 at the earliest before it becomes economic to build outside the cities.”
“In the capital, our agents report that the market is incredibly active, with limited supply putting immense upward pressure on prices.
“In Clonskeagh, REA Ed Dempsey have confirmed that the average three bed semi has gone from €445,000 last March to €535,000 this year, a rise of 20.2% in a year, and 7% in the quarter.”
The largest growth in the country in the first three months was in Kilkenny city, where average prices jumped by 15.8% from €190,000 to €220,000.
“There is a desperately poor supply on the market, which means that any property is selling quickly and strongly, with an average selling time of three weeks,” said local agent Michael Boyd of REA Boyd.
Ends

Available for interview:
Healy Hynes, REA spokesperson and auctioneer
healy@hynes.ie 087 263 2295
Media information: Darren Hughes, 086 293 7037, Darren@mediaconsult.ie



Price Survey - Louth07 February 2017

First-time buyers, encouraged by the easing of the Central Bank’s restrictions on mortgage deposit lending, will drive a rise of 7% in house prices in Louth throughout 2017, estate agents have predicted.

A survey carried out by the Real Estate Alliance Group has shown agents expect prices in the county to continue to rise after the 14.7%% growth experienced in 2016.

This comes as the REA Average House Price Survey revealed that prices in Dundalk had increased by 32% or €40,000 over the past year – with the average three-bed semi now costing €165,000.

The equivalent house cost €125,000 in December 2015, with the low supply of property in the town fuelling rises amongst those wanting to get themselves on the housing ladder.

In Drogheda, the average house price now stands at €205,000, up 3.8% (€7,500) on the year, with the market behaving along the lines of similar towns in commuter counties whose prices are above €200,000 and the Central bank restrictions and income multipliers come more into play.

“Downsizers are competing with first-time buyers for older properties in Drogheda due to lack of new homes supply,” said Darina Collins of REA O’Brien Collins in Drogheda.

The survey found that agents expect prices nationally to rise by 6.1% over the next year – with Dublin predicted to grow by 6.8% over the next 12 months.

Agents in the three main cities outside Dublin are optimistic about 2017, with rises of 10% predicted in Limerick and Galway, with Cork looking at a more modest 5% increase with agents in the latter two areas highlighting a lack of new developments planned for the cities.

The outlook for the commuter areas surrounding the capital is quite cautious, with counties around Dublin predicting a rise of 3.8% on average and many agents fearing that the market has hit its height under the current financial regime.

The average semi-detached house nationally now costs €202,926, the Q4 REA Average House Price Survey has found – a rise of 1.4% on the Q3 figure of €200,148.
The biggest percentage increases over the past year came in the country’s smaller rural towns situated outside of Dublin, the commuter belt and the major cities.
Prices here rose by an average of 12.3% over the year, with a three-bed semi now costing €134,290 – an increase of 2.4% in the past three months.

 “The announcement of the easing of the Central Bank restrictions has given the market great short-term hope, but the real problem in the property lies in supply,” said REA chairman Eamonn Spratt.

“We are bringing people into the market, but we have no long-term plan to provide the suitable housing that they need around the country.

“The fact remains that builders will not create developments unless those properties can be sold for more than €200,000.

“Until that point, unless there is state intervention on supply financing, we will not see sustainable building in areas where the average is below that point.

“It is this realisation that is causing price inflation in towns around the country, with the highest rises of all – an average of 7.4% – being predicted for the sector outside of Dublin, the commuter areas and the major cities.




Ends

Available for interview:
Darina Collins, REA O’Brien Collins, Drogheda, 086 3847542
Michael Gunne, REA Gunne Property, Dundalk, 086 389 0009

Price Survey - Meath07 February 2017

House prices in Meath are predicted to rise by 1.8% in 2017 as the lack of supply of suitable new homes continues to dominate the market, estate agents have predicted.

A survey carried out by the Real Estate Alliance Group has shown agents expect prices in the county to continue to rise – but at a slower rate – after the 6.4% growth experienced in 2016.

The outlook for the commuter areas surrounding the capital is quite cautious, with counties around Dublin predicting a rise of 3.8% on average and many agents fearing that the market has hit its height under the current financial regime.

This comes as the REA Average House Price Survey revealed that prices in Meath had increased by €12,500 over the past year – with the average three-bed semi now costing €207,500.

Navan saw prices grow by 8% to €185,000 in 2016, Kells rose by 10% to €165,000, Trim increased by 8.3% to €195,000 and Ashbourne was up 1.8% from €280,000 to €285,000.

“The Central Bank rules easing off will have a positive effect on the market. It seems to be easier to get a mortgage but the loan approval lifespan is too short for many buyers,” said Michael Gavigan from REA T&J Gavigan in Navan.

The survey found that agents expect prices nationally to rise by 6.1% over the next year – with Dublin predicted to grow by 6.8% over the next 12 months.

Agents in the three main cities outside Dublin are optimistic about 2017, with rises of 10% predicted in Limerick and Galway, with Cork looking at a more modest 5% increase with agents in the latter two areas highlighting a lack of new developments planned for the cities.

The average semi-detached house nationally now costs €202,926, the Q4 REA Average House Price Survey has found – a rise of 1.4% on the Q3 figure of €200,148.
The biggest percentage increases over the past year came in the country’s smaller rural towns situated outside of Dublin, the commuter belt and the major cities.
Prices here rose by an average of 12.3% over the year, with a three-bed semi now costing €134,290 – an increase of 2.4% in the past three months.

 “The announcement of the easing of the Central Bank restrictions has given the market great short-term hope, but the real problem in the property lies in supply,” said REA chairman Eamonn Spratt.

“We are bringing people into the market, but we have no long-term plan to provide the suitable housing that they need around the country.

“The fact remains that builders will not create developments unless those properties can be sold for more than €200,000.

“Until that point, unless there is state intervention on supply financing, we will not see sustainable building in areas where the average is below that point.

“It is this realisation that is causing price inflation in towns around the country, with the highest rises of all – an average of 7.4% – being predicted for the sector outside of Dublin, the commuter areas and the major cities.”




Ends


Available for interview:
Paul Grimes, Ashbourne, 087 2556945
Cara Gavigan, Kells, 086 2454707
Michael Gavigan, Navan, 086 2560530
Thomas Potterton, Trim, 086 2569344

House prices in Tipperary are expected to rise by 6.8% in 201712 January 2017

House prices in Tipperary are expected to rise by 6.8% in 2017, a survey by the Real Estate Alliance Group has found.

Limited supply and the easing of first-time buyers restrictions are expected to continue the 9.8% growth that the county experienced in 2016, according to REA.

This comes as the Q4 REA Average House Price Survey revealed that prices in Tipperary had increased by €12,625,000 over the past year – with the average three-bed semi now costing €141,250.

Lack of suitable supply has driven average house price rises throughout the county in 2016.

Nenagh showed the biggest increase at 19.7% – with prices moving from €117,000 to €140,000 in the 12-month period.

Prices in Roscrea increased by 2.1%, and stand at €120,000, while those in Clonmel rose 3.2% to €160,000.

Prices in Newport rose by €20,000 to €145,000 over the year – an annual increase of 16%.

The price prediction survey found that agents expect prices nationally to rise by 6.1% over the next year – with Dublin predicted to grow by 6.8% over the next 12 months.

Agents in the three main cities outside Dublin are optimistic about 2017, with rises of 10% predicted in Limerick and Galway, with Cork looking at a more modest 5% increase with agents in the latter two areas highlighting a lack of new developments planned for the cities.

The outlook for the commuter areas surrounding the capital is quite cautious, with counties around Dublin predicting a rise of 3.8% on average and many agents fearing that the market has hit its height under the current financial regime.

The average semi-detached house nationally now costs €202,926, the Q4 REA Average House Price Survey has found – a rise of 1.4% on the Q3 figure of €200,148.
The biggest percentage increases over the past year came in the country’s smaller rural towns situated outside of Dublin, the commuter belt and the major cities.
Prices here rose by an average of 12.3% over the year, with a three-bed semi now costing €134,290 – an increase of 2.4% in the past three months.

 “The announcement of the easing of the Central Bank restrictions has given the market great short-term hope, but the real problem in the property lies in supply,” said REA chairman Eamonn Spratt.

“We are bringing people into the market, but we have no long-term plan to provide the suitable housing that they need around the country.

“The fact remains that builders will not create developments unless those properties can be sold for more than €200,000.

“Until that point, unless there is state intervention on supply financing, we will not see sustainable building in areas where the average is below that point.

“It is this realisation that is causing price inflation in towns around the country, with the highest rises of all – an average of 7.4% – being predicted for the sector outside of Dublin, the commuter areas and the major cities.




Ends

Available for interview:
Eoin Dillon, Nenagh, 087 2052 716
Seamus Browne, Roscrea, 0872499570
James Lee, Newport, 086 2351221
John Stokes, Clonmel, 086 8213777


Message from our Chairman

Eamonn Spratt Eamonn Spratt - Chairman
Real Estate Alliance

We ensure client interests always come first.  We guide our clients through every step of the letting, sales, management & valuations process.

Why use REA agents?

We are able to offer our clients a unique combination of in-depth local knowledge, fully supported by the resources of a nationwide organisation.

Maggie Walshe REA