Q1 2018 - REA Average House Price Survey 26 March 2018
The rate of increase in three-bed semi-detached home prices in Dublin slowed to just 0.5% in the first three months of the year the Q1 Irish Independent REA Average House Price Index has found.
After rising by 12.5% in 2017, the average price in the capital has increased by just €2,000 in the opening quarter and now stands at €440,000 – exactly twice the Central Bank’s €220,000 mortgage deposit threshold.
The rate of increase in three-bed semi-detached home prices in Dublin has now slowed to 2% over the past six months, compared to an increase of 4.5% in the opening three months of 2017.
And while there is both good demand and plenty of funded buyers in the market, REA agents are reporting that prices may have settled to a stable level of affordability.
While most REA agents in the capital reported that prices in Dublin’s postcode zones have been static in the first three months of the year, the only rises that were reported were in areas where prices were more affordable such Dublin 24 (+2% €260,000) and Lucan (+2% €352,000).
“The Dublin market has become quite price sensitive, even though we are seeing healthy demand and good liquidity with plenty of mortgage lending,” said REA spokesperson Barry McDonald.
“What we may be seeing, after the rapid increases of recent years, are the Central Bank mortgage lending restrictions imposing an upper level on purchasing power for some buyers.
“There has been a 3% reduction in cash buyers in the market, with mortgage approved house hunters now making up 74% of purchasers, increasing the effect of the Central Bank rules on the market.
“We are seeing strong demand across the board, and homes are reaching sale agreed in just four weeks in Dublin – which is good news for both buyers and vendors.
“Combined prices in Dublin city and county rose by just 0.7%, driven by increases in north county areas Skerries (+2.8% €365,000) and Balbriggan (+1.9% €265,000), with prices being seen as more affordable than the city.”
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 to the close of last week.
The average semi-detached house nationally now costs €229,111, the Q1 REA Average House Price Survey has found – a rise of 1.5% on the Q4 2017 figure of €225,806.
Overall, the average house price across the country rose by 9.1% over the past 12 months – indicating that the market is steadying after the 11.3% overall rise in 2017.
The commuter counties continued their recent steady growth with a 1.4% increase in Q1, with the average house now selling for €235,900 – a rise of €3,000 in the first three months of the year.
The country’s major cities outside Dublin recorded a combined Q1 rise of 2.1%, with an average three-bed semi costing €243,750.
Limerick City saw a 4.2% rise, with prices increasing from €192,000 to €2000,000 since December.
Average Q1 selling prices were also 2.9% higher in Galway City, where the typical semi-detached house is now fetching €265,000 and agents REA McGreal Burke reporting strong with ten buyers for every property on the market.
While Cork City registered a €5,000 (1.6%) increase in Q1 to bring levels to €315,000, prices remained static in Waterford City at €195,000.
“Agents in Cork City are returning their first quarter of growth in nine months – on a 3.3% annual increase – due to the difficulties that buyers find in breaching the gap between the deposit threshold and the €315,000 market value in the Leeside city,” said Mr McDonald.
“What Dublin can learn from Cork City’s experience is that there may come a point when the average price can represent a step too far over the €220,000 mortgage deposit limit.
“In Cork’s case, the area does not benefit from the higher wages available in the capital and the average house is taking twice as long to sell (10 weeks) than the national average.”
The highest increases were seen in the rest of the country’s towns, which experienced a 2.9% rise in Q1 to an average of €150,050.
The highest rate of increase in the country came in Cavan Town where prices rose by €10,000 or 12% in Q1.
“Our agent Peter Donohoe reports that prices are being driven by limited supply and competition between owner occupiers and buy to let investors in what is a rising rental market in the town,” said Mr McDonald.
“In Laois, we have seen rises of 6% in the opening quarter based on lack of supply and prices at €175,000 which are attracting the commuter market.
“In commuter counties such as Kildare, the biggest percentage rises are coming in towns such as Newbridge (2.3%) which recorded double the increase of Naas (1.1%) because at €225,000, property is nearer to the Central Bank’s deposit threshold.”
REA Q3 2017 Average House Price Index 10 January 2018
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
Available for interview:
Healy Hynes, REA spokesperson, email@example.com, 087 263 2295
Media information: Darren Hughes, 086 293 7037,
Q2 Average House Prices 2017 26 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
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 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
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
Media information: Darren Hughes, 086 293 7037,
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.
Q1 2017 Average House Price Survey 27 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.
Available for interview:
Healy Hynes, REA spokesperson and auctioneer
firstname.lastname@example.org 087 263 2295
Media information: Darren Hughes, 086 293 7037, Darren@mediaconsult.ie
REA House Price Predictions 2017 09 January 2017
First-time buyers, encouraged by the easing of the Central Bank’s restrictions on mortgage deposit lending, will drive a continued rise in house prices throughout 2017, estate agents have predicted.
A survey carried out for the Irish Independent by the Real Estate Alliance Group has found that agents throughout the country expect prices to rise by 6.1% on average in 2017.
And after a bumpy year for the Dublin market, agents in the capital are predicting that house price rises will outstrip the national average and grow by 6.8% over the next 12 months.
Rising rents, a lack of suitable supply and the punitive mortgage deposit rules for first and second time buyers had combined to put the Dublin property market into reverse throughout the opening months of 2016.
However, an increase in mortgage-approved buyers and the recent easing of the Central Bank’s deposit restrictions has seen first-time buyers return to viewings.
This, combined with a shortage of suitable supply, has caused prices to appreciate, and REA agents in the capital are predicting that the outlook is bright for the new year, at least in the lower end of the market.
However, there is less appreciation anticipated in the upper ends of the family home scale as serious issues around the income multiplier and the deposit rates put the brakes on many second-time buyers trading up.
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.
Agents in Meath are predicting just a 1.8% change next year, with some areas such as Navan and Kells forecasting that there will be no movement in the coming 12 months, thanks to a lack of new development and a shortage of suitable supply.
There was minimal growth in the final quarter of 2016 in Wicklow, however, agents are confident that the market will react positively to a series of significant upcoming new developments adjacent to the N11 including Kilcoole, Rathnew, Arklow and Wicklow Town.
Prices in Kildare were stagnant in the REA’s Q4 Average House Price Survey, and REA are predicting that the Government’s Help To Buy Scheme and the easing of the Central Bank restrictions will combine to produce a 3.5% increase in the coming year.
“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.
“Longford, for example, grew by 41% in 2016 and prices are predicted to rise by a further 15% this year.
“However, the price of the average house in Longford town is just €78,000 and will reach €90,000 by the end of 2017 simply because the oversupply on the market has now sold and there are no new developments on the horizon.
“Double digit rises of 10% are also being predicted for the same reason in Roscommon, Monaghan, Cavan, Galway County and Kilkenny.”
The lack of building opportunity could hurt future economic development in lower-priced counties, as the example of Carrick-Shannon in Leitrim shows.
Local agents report that employment is growing in the town and that there will be a shortage of suitable properties through till 2018 at the earliest, with lack of supply predicted to drive a 10% rise in the coming year.
“The average house price is €122,000 and unless houses can sell for €180,000, builders will not make money and start building,” said Joe Brady of REA Brady.
In some areas of the commuter belt, those trading down are now in competition with first-time buyers such as In Ashbourne (+2%) and Drogheda, which is predicting a 7% rise.
REA Q4 Average House Price Survey 26 December 2016
The price of an average house in Dublin rose by 4.2% in the final quarter of the year as first-time buyers returned to viewings in the capital.
The average three-bed semi-detached in Dublin city now costs €389,167, a rise of €15,834 (4.2%) in the last three months and an increase of 8.9% over the past year, the Q4 REA Average House Price Index has found.
The announcement of the upcoming easing of the Central Bank lending restrictions on first-time buyers has had an immediate effect in Dublin, with hopeful buyers suddenly back in evidence at house viewings.
And the survey found it took just five weeks to sell the average house in Dublin City in Q4, a drop of two weeks from Q3.
The REA Average House Price Survey concentrates on the 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 to the end of the selling season in December.
There were substantial rises in both South County Dublin (€406,667 up 2.5%) and North County Dublin (€267,500 up 2.9%) as the capital’s property market, which had been falling this time last year, finished with an 8.1% overall annual increase.
However, while the easing of the restriction on first-time buyers deposits has had an impact in the capital, the commuter market experienced a rise of just 1% in Q4 with prices static in commuter towns such as Ashbourne, Blessington, Naas, Maynooth and Celbridge.
And the major cities such as Cork, Limerick and Galway followed much the same pattern in Q4, returning an increase of 1.1% over the last three months, with prices static in Cork City at €295,000 – a rise of just €10,000 (3.5%) on the December 2015 figure.
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.
While the easing of the Central Bank deposit restrictions has had a positive effect on the market, the lack of suitable supply is the biggest influence nationwide, according to REA Chairman Eamonn Spratt.
“In many lower-priced towns, a previous oversupply has now worked its way out of the market, and buyers are realising that there will be no new developments as it is still uneconomical for builders to start new-builds,” said Mr Spratt.
“For that reason Longford, which is the most affordable county in the country, has seen its three-bed semi price rise by a massive 41.8% over the past 12 months – going from €55,000 last December to its present price of €78,000.
“Similarly, investors in property in Roscommon would have seen their values rise by 28.6% over the past year, with agents reporting that Q4 rises of 8% in Roscommon town are fuelled by buyers realising that there will be no further building in the area in the short term.”
After seeing the biggest growth in the country over the past few years, counties in the commuter belt have seen their progress slow or stagnate over the past three months with Meath (1%), Kildare (0%) and Wicklow (0.8%) all starkly contrasting with the growth in the Dublin market.
“Our agents are reporting that the income multiplier restrictions are having the greatest effect in commuter counties, and couples earning €60,000, for example, cannot now afford to purchase suitable homes due to lack of supply,” said Eamonn Spratt.
“There is a cap with the multiplier of 3.5 times income beyond which many couples cannot go, and while there is plenty of activity, in some commuter towns prices are probably as high as they can go under the current regulations.
“However, some of those same commuter towns nearer Dublin are beginning to see new builds commencing which shows that developers are confident that if they build units, they will sell above the profitability cut-off floor of around €200,000.”
The average time taken to buy a house dropped from six to five weeks in Q4, with both Dublin city and county and the country’s large regional towns experiencing shorter sale times.
There was also an increase of mortgage-financed buyers nationwide with cash buyers making up just 32% of sales around the country – down from 40% at the end of 2015.
In Dublin, just 25% of sales are now to cash buyers, while the figure in the commuter counties is lower again at 21%.
Barry McDonald of REA McDonald in Lucan thinks it will be the New Year before we see the full impact of the lifting of the Central Bank restrictions and the Government’s Help To Buy scheme.
“First-time buyers are definitely the main cohort out in the market in Dublin – most obviously in the €250,000 to €300,000 price bracket which is moving very well,” he said.
“However, as you move up the price range to the €400,000-plus market, buyers are thinner on the ground.
“This is a side-effect of the continued 20% deposit restrictions placed upon second-time buyers, who cannot afford to trade up in the market, thus freeing up suitable starter homes.
“We are also seeing vendors thinking that they may do better in the new year and holding off before coming to market.
‘The market is very definitely being driven by supply and not demand. The typical scenario now is that there are between one and three bidders for a property rather than five or more and buyers are finding that if they miss out, there is not necessarily an equivalent property out there.”
Media information: Darren Hughes, MediaConsult, email@example.com, 086 293 7037
Available for interview: Eamonn Spratt, Chairman REA, 086 253 1277
Q3 Average House Price Survey Sept 2016 26 September 2016
The average three-bed semi has risen above €200,000 for the first time since the country emerged from the property crash, according to a national survey carried out by Real Estate Alliance.
And with an increase of mortgage-backed buyers on the market chasing a limited supply, prices in Dublin have grown by +2.75% – almost double that of the previous three months.
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 to the end of Q3 this week.
The average three bed semi nationally now costs €200,093, an increase of €4,732 (+2.42%) since the end of June. This is a rise of 6.37% against the same time last year.
Prices in Dublin city grew by +2.75% to €373,333 since June – almost twice the growth experienced in the same area in Q2 as buyers chase a scarce supply of suitable housing.
In Dublin, one agent, Ed Dempsey in Clonskeagh, is reporting increases of €25,000 for sale prices over the past three months, with the average three-bed semi increasing by 5.49% from €455,000 in June to €480,000 now – a rise of 9.09% year-on-year.
Other Southside Dublin agents are reporting that the autumn market is stronger than Q2, with the lower and middle ends of the market beginning to move due to a release of pent-up demand.
Prices in the tier containing commuter counties and the main cities of Cork and Galway have risen by an average of just under €3,000 to €217,176 (+1.21%) while those in the rest of the country have increased by nearly €5,000 to €133,268 (+3.55%).
“We are seeing little or no increase in supply nationally, with an increase in funded buyers fueling the market in the short-term,” said REA Chairman Michael O’Connor.
“Many of our agents are now reporting some buyers are returning to the market having achieved a level of savings, and that there is an increase in mortgage-funded purchases.
“The average amount of cash buyers has fallen by 3% to 33% nationwide, but in Dublin city that figure is down by 7% in three months, with 72% of transactions now mortgage-funded.
“The early effects of the Central Bank restrictions had previously seen prices drop in the capital in the year to Q1 2016, but a combination of a longer time period to save and pressure on supply is manifesting itself in price growth.
“Our agents are also reporting that many first-time buyers seem to be holding fire in the hope of increased incentives in the upcoming budget.”
“The Central Bank’s mortgage deposit rules are still being keenly felt in the commuter areas, with most rises occurring in towns where three-bed semis are available for under the deposit threshold of €220,000
The immediate aftermath of the Brexit vote has had an effect in the north west where Donegal is the only county to register a three-month fall on -1.73%.
This has been most keenly felt in traditional holiday home spots such as Bundoran where the average three-bed semi has dropped by -3.41% in three months from 88,000 to 85,000.
Available for interview:
Michael O’Connor, REA chairman and auctioneer.
087 259 7034 firstname.lastname@example.org
Media information: Darren Hughes, 086 293 7037, Darren@mediaconsult.ie