House prices are rising in commuter areas like Dundalk
The price of the average three-bed semi in Louth rose by 1.3% to €202,500 in the last three months, according to a national survey carried out by Real Estate Alliance.
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.
“There is good demand in Dundalk, but the town has very low stock for second-hand homes,” said Michael Gunne from REA Gunne Property in Dundalk, where the average price is now €180,000 – a 9.1% annual rise.
According to Darina Collins from REA O’Brien Collins in Drogheda, the market in the town is “buoyant” with good demand from first-time buyers and investors, with prices increasing by 2.3% to €225,000 in Q1 – a 7.2% increase on March 2017.
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 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.
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.
“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.
“We are experiencing strong demand across the board, and homes are reaching sale agreed in just five weeks across the country – which is good news for both buyers and vendors."
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.
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.