17 January 2018
Average three-bed semi price rises in Kilkenny County outstripped the rest of the country with a 23.3% increase in 2017, according to a national survey carried out by Real Estate Alliance.
The price of the average three-bed semi in rose to €203,500 in the last 12 months, and after prices increased by 3% between September and December 2017, local agents are predicting that property values will rise by a further 10% in the county in the coming year.
House prices in Kilkenny City alone rose by 27.4% in 2017, driven by a lack of supply of suitable homes on the market.
And REA Boyd in Kilkenny City are predicting that the continuing shortage of supply will increase prices by about 15% in the next year.
REA Grace in Callan predict that the market will get stronger with an increase in first-time buyers at viewings and more mortgages available.
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 €225,806, the Q4 REA Average House Price Survey found – a rise of 1.8% on the Q3 figure of €221,861.
Overall, the average house price across the country rose by 11.3% over the past 12 months – compared to 7.7% nationally in 2016.
The survey also found that agents throughout the country expect prices to rise by 7.5% on average in the next 12 months.
“The heated market that we saw throughout much of 2017 has cooled somewhat and we are now in a period of more certainty,” said REA spokesperson Healy Hynes.
“A lack of supply is still the main driver of the market, with listings of second hand properties at a low level around the country.
“Anything that does go on sale is reaching sale agreed in a short period of time – five weeks on average and four weeks in Dublin city.
“However, this is not normal in a properly functioning market, where time periods of eight weeks to sale agreed are more common.”
The rate of increase in three-bed semi-detached home prices in Dublin slowed to 1.5% in the fourth quarter of the year as buyers look to new homes on the horizon.
The commuter counties also returned a restricted growth of 1.5% in Q4, and 10% overall for the year, following a relatively static 2016, with the average house now selling for €229,300.
The lowest increase in Q4 was reflected in the country’s cities outside of Dublin, where the grouping of Cork, Limerick, Waterford and Galway returned 1% growth, with average prices increasing by €2,375 to €238,625.
Towns throughout the rest of the country saw rises of 2.6% in the fourth quarter with the average three-bed semi now costing €146,633, up 12.3% from €130,600 in December 2016.
An increase in mortgage-approved buyers and the Help To Buy Scheme saw first-time buyers return to viewings in force over the past 12 months.
However, a shortage of suitable supply caused prices to appreciate, and REA agents in the capital are predicting that new homes will drive a bright outlook for the new year, freeing up some supply of second hand stock in the market.
Available for interview:
Robbie Grace, REA Grace, Callan, 086 8297189
Michael Boyd, REA Boyd’s, Kilkenny, 087 2611699
Media information: Darren Hughes, 086 293 7037, Darren@mediaconsult.ie