The price of the average three-bed semi in Waterford city is expected to rise by 3% in the next 12 months, while prices in the county are expected to remain static, according to a survey by Real Estate Alliance.
Three-bed semi-detached homes in the city now cost an average of €280,000, up 12% on the December 2021 average of €250,000, with prices increasing by 3.7% in the past three months, the Q4 REA Average House Price Index shows.
Prices across the county have risen to an average of €215,000, unchanged in the final quarter of the year but representing an annual increase of 5% from €205,000.
The 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 second-hand property market in towns and cities countrywide.
First time buyers made up 50% of the market in Q4, with 20% of purchasers coming from outside the county.
“Despite on-going challenges that will stretch into 2023, such as increasing interest rates and macro-economic factors such as the war in Ukraine and global economic slow-down, I expect the market to show its resilience, particularly in the second half of the year,” said Barry McDonald, REA McDonald, Waterford city.
Across the county, the average time taken to sell has increased from six to eight weeks. Time to sell in the city this quarter has risen from four to six weeks.
“We continue to predict that the properties which are realistically priced shall achieve interest in the market,” said Eamonn Spratt of REA Spratt, Dungarvan.
“There seems to be a noticeable increase in buyers purchasing in the larger towns which provide a full range of services resulting in minimising transportation costs.
“Purchasers are becoming more aware of the increased interest rates and the risk of further increases in costs of borrowing money.”
The actual selling price of a three-bedroomed semi-detached house across the country rose by 0.36% over the past three months to €291,667 – representing an annual increase of 8%.
However, house prices in Dublin have fallen slightly by -0.34% in the same period, as mortgage interest rate rises and cost of living increases stem the stream of potential homeowners.
REA agents throughout the country expect prices to rise by just under 3% on average in the next 12 months.
The property market is expected to enjoy a calmer 2023 as mortgage interest rate rises and cost of living increases affect buying ability, according to the nationwide survey.
The majority of REA members feel that the scheduled changes to the Planning Acts will have little effect on market supply in 2023, due to the time lag between legislation and enactment.