The price of an average three bedroom semi detached house in Co Donegal has risen by 3.45% to €75,000 in the first three months of 2015, with an overall rise of 5.63% in the past six months, according to a national survey carried out by Real Estate Alliance.
The Real Estate Alliance Average house index concentrates on Ireland's typical stock home, the three-bed semi, giving a picture of the property market in towns and cities countrywide.
It now takes seven weeks to sell the average house in Bundoran, compared to 12 weeks in September 2014, where the rise in sterling has been a contributory factor in a 7.69% rise in prices in the first three months of the year to an average of €70,000.
“The affordable end of the market is extremely busy with strong demand for homes priced up to €100,000,” said Michael McElhinney from REA McElhinney in Bundoran.
“We see a shortage of supply at this end but the market remains quite buoyant and this is reflecting the sterling exchange rate.”
According to Paul McElhinney from REA McElhinney in Milford: “There is still strong interest in three bed semis, with our average price at €80,000, and although supply has eased up, there is still a steady stream and demand has kept pace.
“As a result prices are stabilised rather than rising although over the course of the year we may see a slight increase.”
The average semi detached house nationally, including Dublin, now costs €187,153 the latest REA survey has found – a rise of 16.23% over the past 12 months.
However, the average house has risen by just 1.32%, or €7,005, across the country over the December 2014 figure of €184,713 – and the lack of a supply of suitable housing is a feature of the market across the country.
“There is an acute lack of supply of three-bedroom family homes because it is still not financially viable in many areas for builders to construct homes and make a profit,” said REA Chief Executive Philip Farrell.
“In country and commuter areas where the average value is below €200,000, supply of new homes will remain reduced even if lands become available due to profitability issues for developers who need houses to sell for above that mark.
“This is caused by the current high cost of construction which is exacerbated by the significant taxes which are payable on a new home (28% of the cost) and the recently increased building regulations.“
And while Dublin led the way in the market recovery last year, prices have fallen by -0.28% in Dublin city and county in the opening quarter, where the average semi-d now stands at €352,500.
In a complete shift in the market, the biggest increases over the last year have come from what is termed Tier Three – the country areas, outside of the pale and the major cities, which have gone up by 17.28%, ahead of Dublin city’s 17.18%, and 14.82% when Dublin city and county are combined.
Over the past six months, property price rise rates in the rest of the country (5.1%) have more than trebled that of the capital (1.55%).
In the opening quarter this year, there have been significant increases in Carlow (7.50%) Kilkenny City (7.41%), Waterford City (5%) and Wexford (8%).
Available for interview:
Michael McElhinney, REA McElhinney Bundoran, 087 2598966
Paul McElhinney, REA McElhinney Milford, 086 122 9335
Philip Farrell, CEO Real Estate Alliance
086 250 3515 / email@example.com
For further information on exhibition contact:
Eimer O’Keefe, Real Estate Alliance
086 8249040 / firstname.lastname@example.org
Darren Hughes, MediaConsult 086 2937037 / email@example.com