REA survey expects house prices in Louth to remain unchanged in 2020

The price of the average three-bed semi in County Louth fell by 4.8% over the past 12 months, with experts predicting the market to remain unchanged in 2020, according to a survey carried out by Real Estate Alliance.

Prices in the county fell by €10,000 to €200,000 in 2019 – remaining unchanged between September and December.

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 second-hand property market in towns and cities countrywide.

“Currently, there is a shortage of properties. As we are a border town, Brexit will also influence market trends,” said Michael Gunne of REA Gunne Property in Dundalk.

Average house prices nationally fell annually for the first time since the economic recovery, the Q4 REA Average House Price Index found.

The price of a three-bedroomed semi-detached house across the country fell by -0.6% over the past year after a 4.6% annual rise in 2018.

“The market has flat-lined in second-hand residential, due in part to the increase in supply of new homes for first time buyers. Investors are slow to move in this climate,” said Darina Collins of REA O’Brien Collins in Drogheda.

“Increasing supply of new homes plus Brexit uncertainty will continue to affect the second-hand market.

“Growing awareness of energy rating and environmental issues, along with FTB incentives, make new builds more attractive and sustainable in the 3-bed semi market.”

Time taken to sell remained at 10 weeks in Q4 in Drogheda, where average prices are €210,000 while it rose in Dundalk from six weeks to eight, with three-bed semis selling for €190,000.

The average family home nationally now costs €234,704, the survey found – a drop of -0.1% on the Q3 figure of €235,009.

However, drops across the country are far lower than the preceding quarter (-0.4%), indicating that some confidence returned to the market in the final 13 weeks of the year, with the prospect of a resolution to Brexit uncertainty.

Three-bed semi-detached houses in Dublin city registered a fourth consecutive quarter fall (-0.6%) since the end of September and have decreased by -4.3% compared to December 2018.

The price of the average three-bed semi-detached house in the capital’s postcode districts now stands at €425,833 – down €20,000 from €445,167 a year ago.

The absence of small investors due to Brexit uncertainty and a lack of incentives has also removed stimulus from the resales market and added to supply in many cases as landlords leave the market nationwide.

Prices fell slightly by -0.05% in the commuter counties in the past three months, with the average house now selling for €246,500 – an annual fall of 1%.

Prices in the country’s major cities outside Dublin – Cork, Galway, Waterford – remained largely unchanged

The highest annual price increases (2.8%) were once again seen in the rest of the country’s towns which rose in selling price by an average of almost €5,000 in the past year and 0.3% in the past three months to €162,207.