The price of an average three bedroom semi detached house in Leitrim has risen by 3.23% to €80,000 in the first three months of 2015, with an overall increase of 6.67% in the past six months, according to a national survey carried out by Real Estate Alliance.
The Real Estate Alliance Average house index concentrates on Ireland's typical stock home, the three-bed semi, giving a picture of the property market in towns and cities countrywide.
It now takes two weeks to sell the average house in Carrick-on-Shannon , one of the fastest moving markets in the country, and eight weeks in the Carrigallen area, down from 12 weeks in September 2014.
According to Joe Brady from REA Brady in Carrick-on-Shannon, new stock is coming to the market but at a slower level than 2014, and average prices are €110,000.
“Receivers are still active and their levels are still high, however much of the distressed stock is now off the market,” he said.
“Buyers are fully off the fence and less hesitant to bid having seen prices increase over the past two quarters. UK buyers are very active on rural properties, accounting for half of total sales in our office.”
According to James Spring from REA Peter Donohue in Carrigallen, the local market there is picking up and prices have increased by €5,000 to €50,000 in the past three months.
The average semi detached house nationally, including Dublin, now costs €187,153 the latest REA survey has found – a rise of 16.23% over the past 12 months.
However, the average house has risen by just 1.32%, or €7,005, across the country over the December 2014 figure of €184,713 – and the lack of a supply of suitable housing is a feature of the market across the country.
“There is an acute lack of supply of three-bedroom family homes because it is still not financially viable in many areas for builders to construct homes and make a profit,” said REA Chief Executive Philip Farrell.
“In country and commuter areas where the average value is below €200,000, supply of new homes will remain reduced even if lands become available due to profitability issues for developers who need houses to sell for above that mark.
“This is caused by the current high cost of construction which is exacerbated by the significant taxes which are payable on a new home (28% of the cost) and the recently increased building regulations.“
And while Dublin led the way in the market recovery last year, prices have fallen by -0.28% in Dublin city and county in the opening quarter, where the average semi-d now stands at €352,500.
In a complete shift in the market, the biggest increases over the last year have come from what is termed Tier Three – the country areas, outside of the pale and the major cities, which have gone up by 17.28%, ahead of Dublin city’s 17.18%, and 14.82% when Dublin city and county are combined.
Over the past six months, property price rise rates in the rest of the country (5.1%) have more than trebled that of the capital (1.55%).
In the opening quarter this year, there have been significant increases in Carlow (7.50%) Kilkenny City (7.41%), Waterford City (5%) and Wexford (8%), while the rise in sterling has seen a jump in property prices in Bundoran in Donegal of 7.69%.