It is now taking as little as three weeks to sell a three-bed semi -detached house in parts of Dublin, as rising demand pushes up not just sale prices, but also sale times.
Figures from REA agents show that the average three-bed semi-detached in Dublin city now costs € 414,500, a rise of € 10,000 (2.6 per cent) over the last three months and an increase of 14.1 per cent over the past year.
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.
Around the country, the average semi-detached house nationally now costs € 215,269 – an increase of 2.5 per cent on the first quarter figure of € 209,944. Overall, the average house price across the country has risen by 11.2 per cent over the past 12 months – in contrast to the 4.5 per cent increase registered to the full year to June 2016.
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 per cent 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 per cent in Q2 and 9 per cent on the year, the survey found.
The average three-bed semi now costs € 311,000 in Cork (+2 per cent), € 245,000 in Galway (+2.1 per cent) and € 185,000 in Limerick (+3.9 per cent)
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 per cent over the quarter, with a three-bed semi now costing € 138,183 on average – a rise of 12.3 per cent over the past year.
Brexit hits Border towns
However, it’s not all a tale of soaring prices. 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 even 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.
Help to Buy
Moreover, demand for new builds on the back of Help to Buy is softening the price and demand for second-hand properties in parts of the country.
“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.
