Property prices in Louth rose by an average of 8.3% in the first six months of 2022 according to figures released by the Institute of Professional Auctioneers & Valuers (IPAV).
IPAV’s Barometer records prices actually achieved by auctioneers rather than asking prices, for three and four-bedroom semi-detached homes and two-bedroom apartments.
In Louth 2-bed apartments increased by 8.14pc; 3-bedroom houses by 7.79pc and 4-bedroom houses by 8.92pc
In the last half of last year the price of a two bedroom apartment in Louth was €143,334 with the average price rising to €155,000 in the first six months of this year.
A three bedroom semi in the six months of last year went for an average price of €256,667, jumping to €276,667 in January to June this year.
Meanwhile, four bedroom semis in Louth sold for an average of €285,000 in July to December last year with prices rising to €310,417 in the first six months of this year.
Speaking to the Dundalk Democrat regarding the report, Joanne Lavelle of
Michael Lavelle Estate Agents, Dundalk said:
“Generally the property price barometer indicates that the price of property has gone up nationally by just over 7% and Louth is close to that [with a rise of] around 8%.
“But looking under the bonnet of the figures, the first four months had seen a higher increase than the last two months, in May and June the rate of increase was tapering and that bears out my own experience of what is happening in the market.”
Ms. Lavelle says this can be put down to the fact that the summer months are traditionally a bit slower when it comes to property market activity but that it is more to do with the increase in interest rates having an effect on the behaviour of buyers.
“The rate of increase will keep going down and we’re anticipating that to be about 2% nationally between now and the end of the year.
“So by January time would expect the rate of increase to be about 2%.”
In their report IPAV have predicted that there will be 0% growth in property prices by early 2023
“In the last 24 months we’ve seen a steep increase, and what we’re seeing now is an eating into that increase and the rate is slowing and that’s what we’re seeing on the ground.”
“There is strong intent with people making informed decisions based on what’s going on around them but we’re not seeing the increases of before, which is not a bad thing.”
Commenting on market trends locally, Ms. Lavelle noted that there is more stock this September than there was this time last year, while also noting that there are still very strong levels of interest out there.
Overall she does not expect prices to reach the level they were at during the boom.
“[Prices] are still a little bit below that level, so I’m not expecting them to jump back up there, because we can see the increases softing a little bit,” she concluded.
Pat Davitt, IPAV Chief Executive, said increasing interest rates “are bound to dampen sentiment, especially with the hike of 1.25 per cent already and further to come.”
He said it was disappointing to see last week’s CSO data showing the residential sector reduced its volume of output by 2.9per cent on a seasonally adjusted basis between Quarter 1 2022 and Quarter 2 2022.
“If we can get to a stage where output grows closer to demand that would be a very desirable situation and it would create stability,” he said.
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