REA Property Price Survey Q4 2018

A slowdown in mortgage lending towards the end of the year is putting a stop to house price inflation in Dublin and surrounding areas, the Q4 Irish Independent REA Average House Price Index has found.
The availability of finance in the market in the latter half of the year is causing what some agents term the Q4 effect, with mortgage lending significantly slowing and buyers complaining that they cannot secure funding for obscure reasons.
The price of a three-bed semi-detached house in Dublin city has increased by just 1.6% in the last 12 months as the Central Bank’s borrowing rules increasingly define affordability in the housing market.
And the capital’s postcode districts saw an increase of just 0.4% in the final quarter of the year compared to 1.5% in the corresponding period in 2017.
One agent, REA Fitzgerald Chambers in Stoneybatter, reported that average prices dropped by €20,000, or -5%, in the final quarter of the year, with average sales times increasing from four to eight weeks.

After rising by 12.5% in 2017, the average price of a second-hand semi-detached house in the capital has increased by just over €7,000 this year and now stands at €445,167.

In line with the rest of the country, the Dublin market has become price sensitive with prices in the north of the county rising by 4.9% to €322,500 in the past 12 months – but remaining static in Swords, Skerries and Balbriggan in the final quarter.

This is in contrast to South County Dublin where prices rose 0.2% on the quarter but have risen by just 0.9% this year, with the average three-bed semi selling for €411,000, and the time taken to sell rising from six to seven weeks.

The Irish Independent 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 to the close of last week.

 “Across the board, agents are reporting that the supply of finance to the market has decreased as banks use up their exceptions to the rules in the early part of the year,” said REA spokesperson Barry McDonald.
“There is a marked decline in the amount of cash buyers in the market – down from 27% to 19% – and that is increasing the influence of the Central Bank’s mortgage lending restrictions on the market.
“There seems to be a direct correlation between enquiry levels and the difficulty in obtaining mortgage approvals, and we have seen time taken to sell rise from five to seven weeks as the year has gone on.
“The second-hand market has become extremely price sensitive across the country and it is the areas with quality housing stock available for under €270,000 that are achieving highest growth.
“Once again there is a drop-off in viewings for four-bedroomed housing in certain areas where they are priced over €400,000, illustrating the influence of the Central Bank rules.”
One agent, REA Sothern in Carlow, is forthright in their description of buyer financing in the marketplace.
“It appears that the lending institutions have used their quotas for the year and are stringing out loan application processes,” said Harry Sothern.
“Sales have fallen through when pre-approved purchasers failed to obtain their mortgage approval.”
The average semi-detached house nationally now costs €236,287, the Q4 REA Average House Price Survey has found – a rise of 0.6% on the Q3 2018 figure of €234,284.
Overall, the average house price across the country rose by 4.6% in 2018 – a decrease on the 5.4% recorded to September and indicating that the market is continuing to steady after an 11.3% overall rise in 2017.
Growth in the commuter counties also slowed to 0.38% in the last three months – an annual rise of 4.18% – with the average house now selling for €249,472.
This is an annual rise of €10,000 and growth of €2,000 in the last three months.
The country’s major cities outside Dublin recorded the biggest rise of the quarter at 1.25%, an annual increase of 5.81%, with an average three-bed semi costing €252,500.
The biggest urban rise was seen in Galway City, where selling prices rose by 2.7% in the quarter to €282,500 – a yearly increase of 9.7%.
“The Galway city market remains buoyant, however it is taking a longer to get sales closed, with average time to sell rising from four to seven weeks in the final quarter,” said Kevin Burke of REA McGreal Burke.
“At the higher price points, sales are slower as the number of cash buyers has dropped from 15 to 10% over the course of the year.”
The price of housing in Waterford City, at €210,000, is one of the reasons for its 2.4% rise in Q4, and 7.7% annual increase, according to Barry McDonald.
“Our agents REA O’Shea O’Toole report that demand continues to be strong and asking prices are being exceeded by competitive bidding., with properties achieving sale agreed status within four weeks of being put on the market,” he said.
“Prices have stayed static in Limerick City in Q4, with its average selling price of €200,000 representing a 4.2% increase throughout 2018 and local agent REA O’Connor Murphy stating that an increase in new developments has stabilised the second-hand residential market.
“Cork has experienced the slowest growth of the four, up 2.4% annually, with an average price of €317,500 remaining static in the past three months and agents reporting a limited supply of three-bed semis in mature and popular residential areas.”

The highest annual increases (7.7%) were once again seen in the rest of the country’s towns which rose in selling price by an average of €10,000 in 2018 and which experienced a 0.85% rise in Q4 to an average of €157,717.

“In these areas you largely have the perfect storm of affordability within the 10% deposit range, and no new homes as it is still uneconomical to build in many places,” said Barry McDonald.
“For example, our agents Coyne & Cuddihy in Killarney report an excellent market for new semi-detached houses up to €250,000, but there is little supply as prohibitive land costs and taxes ensure builders cannot produce houses at this price.
“Brexit uncertainty has also had a major effect in some parts of the country, and in holiday home areas such as Killarney and Bantry buyers in the over €500,000 category are hedging their bets on a rise in sterling if there is no hard Brexit, which could give them 15% increase in value.
“The highest rate of increase in the rest of the country in Q4 came in Longford, where prices rose by 5% to €105,000, giving an annual increase of 16.7%.
“However, as local agent REA Brady state, Longford is still one of the cheapest places in Ireland to buy property, with lots of head room for further price increases.
“The highest annual gains in property came in Laois, which rose 18.2% from €165,000 to €195,000, but which was static in Q4.”

There was also a slowdown in the purchasing of new homes in Dublin in Q4, according to REA agent Paul Grimes.

“New homes were slower than the previous quarter due to increased supply, astute purchasers, and lending exceptions having been reached.

“We are seeing these conditions in far greater volume than in previous years which suggests a changed landscape.

“Construction costs are continuing to climb with workforce availability under increasing pressure, thus putting upwards pressure on new homes’ pricing.”

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Media information: Darren Hughes, darren@mediaconsult.ie

Brexit effect sees property sales to UK buyers rise by 10%

Sales to UK buyers have increased by 10% on average over the past year, a nationwide Brexit property survey has found.

Over 46% of estate agents have seen an increase in enquiries from the UK over the past year, according to the survey carried out by the Real Estate Alliance group.

17% of all property transactions with UK buyers are now directly related to Brexit, with 12% due to jobs moving to Ireland.

The Brexit effect has also hit enquiries in border areas and holiday home destinations, with 21% of agents reporting a decrease in calls from the UK.

Overall enquiries are up by an average of 24% among those experiencing an uplift, while those reporting a decrease are seeing calls down by 25%.

“UK buyers make up 11% of overall enquiries and 6% of sales in the Irish market, with our agents reporting an average of five sales each last year, up 10% on the previous 12 months,” said REA spokesperson Barry McDonald.

“17% of enquiries to REA agents cite Brexit as a direct reason for moving to Ireland. 23% are coming to live and work in Ireland, which is up from 16% in our comparable 2016 survey.

“Of those, 20% intend to commute to work in the UK, 34% will be working from home for UK companies and 46% will now be working in Ireland.”

The survey also shows that 27% are buying for eventual or immediate retirement, 16% are investors, 11% are looking for a change in lifestyle, and 8% are purchasing holiday homes – a market that has been hit by the fall in sterling value.

The typical UK buyer is looking for a rural property (55%) with 67% of them opting for a standalone development.

While the average house price in the State is €234,824, 20% of sales to UK buyers are between €250k-€300k with 22% between €300k-€500k.

Agents reported that almost 40% of enquiries were from buyers in London or the South East of England.

“While 52% of enquiries are coming from returned emigrants, 28% have no previous connection with the country, which we would note as a significant shift,” said McDonald.

“Among our agents who have reported an increase, there is a sentiment that many buyers are leaving the UK in a mixture of fear of the future and disappointment with the result.

“UK activity is the higher end of the market has stalled, according to REA Forkin in Bray who claim that at the €700-800k mark, the prospective buyer is more likely to be engaged in an industry which is affected by Brexit.

“In traditional holiday home spots, agents feel that buyers are reluctant to make a final decision, with many opting to rent."

Real Estate Alliance (REA) is Ireland’s leading property group of Chartered Surveyors with over 55 branches nationwide, comprising many of the country’s longest-established auctioneers and estate agents.


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Media information: Darren Hughes, darren@mediaconsult.ie, 086 293 7037

Q3 Average House Survey 2018 - Kilkenny

The average price of a three-bed semi in Kilkenny City dropped 1.1% to €249,500 between June and September, according to a national survey carried out by Real Estate Alliance.

Overall, the price of the average three-bed semi in County Kilkenny rose by 0.5% to €215,500 between June and September.

County Kilkenny prices rose by 7.5% in the last 12 months, the survey found.

“The bottom of the market is still very strong, but the demand for houses priced at €400,000 upward has definitely slowed,” said Michael Boyd of REA Boyd’s in Kilkenny City.

“There remains a lack of supply, but activity is very strong, there is demand for all properties,” said Robbie Grace of REA Grace in Callan, where the price of the average three-bed semi rose 2.9% to €175,000 this quarter.

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 to the close of last week.

The average semi-detached house nationally now costs €234,824, the Q3 REA Average House Price Survey has found – a rise of 1% on the Q2 2018 figure of €232,441.

Overall, the average house price across the country rose by 5.8% over the past 12 months – a decrease on the 8% recorded to June and indicating that the market is continuing to steady after an 11.3% overall rise in 2017.

The price of a three-bed semi-detached house in Dublin has increased by just 2.7% in the last 12 months as the Central Bank’s borrowing rules increasingly define affordability in the housing market.

The rate of increase in second-hand three-bed semi-detached home prices in Dublin city’s postcode zones was just 0.1% over the last three months, compared to 4.1% for the same quarter last year.

After rising by 12.5% in 2017, the average price of a second-hand semi-detached house in the capital has increased by just €5,300 so far this year and now stands at €443,333.

Growth in the commuter counties also slowed to 0.9% in the last three months, with the average house now selling for €248,528 – a rise of €2,000 on the second three months of the year.

The country’s major cities outside Dublin recorded a combined Q3 rise of 0.8%, with an average three-bed semi costing €249,375.

The highest increases were seen in the rest of the country’s towns, which experienced a 2.1% rise in Q3 to an average of €156,383 – up €3,000 in 12 weeks.

“These are areas where many buyers can still escape with a 10% deposit, it is still largely not economic to build new homes, and the dwindling supply existing stock at lower rates is disappearing,” said REA spokesperson Barry McDonald.

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Available for interview:   

Robbie Grace, REA Grace, Callan, 086 8297189

Michael Boyd, REA Boyd’s, Kilkenny, 087 2611699

Media information: Darren Hughes, 086 293 7037, darren@mediaconsult.ie

REA Q3 2018 Average House Price Report

The Central Bank’s mortgage lending restrictions are putting a stop to rampant house price inflation in Dublin and surrounding areas, the Q3 Irish Independent REA Average House Price Index has found.
The price of a three-bed semi-detached house in Dublin has increased by just 2.7% in the last 12 months as the Central Bank’s borrowing rules increasingly define affordability in the housing market.
The rate of increase in second-hand three-bed semi-detached home prices in Dublin city’s postcode zones was just 0.1% over the last three months, compared to 4.1% for the same quarter last year.
After rising by 12.5% in 2017, the average price of a second-hand semi-detached house in the capital has increased by just €5,300 so far this year and now stands at €443,333.

Prices in the north of the county have risen by 7.5% in the past 12 months, and 0.8% since June to an average of €322,500.

This is in stark contrast to South County Dublin where prices are static on the quarter and have risen by just 2.4% since last September, with the average three-bed semi selling for €410,000, and the time taken to sell rising from five to six weeks.

“There is no doubt that the Central Bank rules are having an effect in the market, and are achieving what they set out to do in terms of keeping a lid on prices,” said REA spokesperson Barry McDonald.

“In the Celtic Tiger years, all prices rose across the board, but in 2018 the system is actually working and the only price inflation is in a new homes market that is concentrated in pockets.

“There has been a 3% reduction in cash buyers in the market in the past three months, with mortgage-approved house hunters now making up 78% of purchasers, increasing the effect of the Central Bank rules on the market.
“The second-hand market has become extremely price sensitive, not just in Dublin, and when we look across the country it is the areas with quality housing stock available for under €270,000 that are achieving highest growth.
“The effect of the Central Bank’s borrowing rule on price ceilings is brought sharply into focus by a drop-off in viewings for four-bedroomed housing in certain areas where they are priced over €400,000, for example.
“Many agents are attributing the lack of transaction to the fine weather in the summer, and report an upswing in activity in September.

“However, there is a defined slowdown in the annual rate of house price inflation as measured in our survey, which is the most reliable indicator of a stable market.”
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 to the close of last week.
The average semi-detached house nationally now costs €234,824, the Q3 REA Average House Price Survey has found – a rise of 1% on the Q2 2018 figure of €232,441.
Overall, the average house price across the country rose by 5.8% over the past 12 months – a decrease on the 8% recorded to June and indicating that the market is continuing to steady after an 11.3% overall rise in 2017.
Growth in the commuter counties also slowed to 0.9% in the last three months, with the average house now selling for €248,528 – a rise of €2,000 on the second three months of the year.
“Commuter areas such as Navan, where housing is priced at an average of €235,000, are experiencing steady growth (+2.2%) because of affordability under the Central Bank rules, and location,” said Barry McDonald.
The country’s major cities outside Dublin recorded a combined Q3 rise of 0.8%, with an average three-bed semi costing €249,375.
Both Waterford (+2.5% €205,000) and Galway (+0.9% €275,000) recorded increases, with agents in both locations citing strong demand but a shortage of suitable properties.
Limerick city (€200,000) returned its first static figure in a number of years, with local agent Michael O’Connor attributing the slowdown in transactions and properties coming to market to the fine weather at the height of summer.
“September appears to be the month where we caught up on lost time and once the kids returned to school the market accelerated with a noticeable increase in transactions,” said Mr O’Connor.

“We are very optimistic that Q4 will be the busiest of the year with enquiries in our office have increasing by around 30%.”
Cork city also registered 0% growth in the quarter with the time taken to sell now running at nine weeks,
The highest increases were seen in the rest of the country’s towns, which experienced a 2.1% rise in Q3 to an average of €156,383 – up €3,000 in 12 weeks.
“These are areas where many buyers can still escape with a 10% deposit, it is still largely not economic to build new homes, and the dwindling supply existing stock at lower rates is disappearing,” said Barry McDonald.
“The highest rate of increase in the country came in Carrigallen in Leitrim where agent Peter Donohoe reported rises of €10,000 to an average of €80,000 (14.3%) in Q3, driven by a lack of supply and a relatively affordable average price.”
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Q2 2018 Average House Price Survey - Dublin

The increase in supply of new homes in Dublin is having an effect on second-hand prices in some areas, the Q2 REA Average House Price Index has found.
The rate of increase in second-hand three-bed semi-detached home prices in in Dublin city was just 0.7% in the last three months, with prices falling slightly in one suburb.
After rising by 12.5% in 2017, the average price of a second-hand semi-detached house in the capital has increased by just €5,000 so far this year and now stands at €443,000.

“Wherever we have new homes on the market, they are definitely having an effect on prices in the existing market as they operate in their own price structure, with buyers prepared to pay a premium for A-rated properties,” said REA spokesperson Barry McDonald.

“As a result, many of our agents in Dublin have reported an increase in time taken to sell the average second-hand property and a slowdown in viewings, especially among first time buyers.

“As agents, our big challenge is to get vendors to accept the reality of the situation on the ground where sellers are not achieving the sort of inflated asking prices that they may expect for properties.

“In my own area, Lucan, we have seen the average three-bed semi price drop slightly by -0.6% (€2,000) in the past three months to €352,000, simply because of the selection of available new homes in the area.

“In the Celtic Tiger years, all prices rose across the board, but in 2018, the system is actually working and the only price inflation is in a new homes market that is concentrated in pockets.”

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 to the close of last week.

Anthony McGee of REA McGee in Rathcoole and Tallaght reports strong demand in both areas and a shortage of suitable supply on the market.

“In Tallaght we are seeing a good number of first time buyers looking to get on the housing ladder as a result of increasing rents, and prices have increased by 1.9% to €265,000, with houses now taking four weeks to sell,” said Anthony.

“We have seen no change with prices static at €315,000 in our Rathcoole office and properties again taking a week longer to sell at five weeks in this easily commutable suburb.”

Paul Grimes of REA Grimes sees steady demand for properties in the city centre where prices are static at €513,000 in the past quarter, with a strong appetite for small units and a high number of cash buyers still present in the market.
“We have recorded increases of 1.4% in Skerries (€370,000) with property being seen as more affordable than the city,” said Mr Grimes.

John Cumisky of REA Cumisky reports that selling prices for three-bed semis in Balbriggan have risen by 1.9% in Q2 and now stand at €270,000, with average selling times moving from six to eight weeks.
REA Ed Dempsey report an increase of 1.7% to €595,000 in Clonskeagh and a 1% increase in Dun Laoghaire where the average price is now €505,000 and easy transport to the city centre is proving a draw.
REA Orchard in Rathfarnham are reporting a €5,000 increase (1.1%) in the past three months to €480,000,  but as is the case throughout the capital, time taken to sell has increased – in this case from four to five weeks.
The average semi-detached house nationally now costs €232,441, the Q2 REA Average House Price Survey has found – a rise of 1.5% on the Q1 2018 figure of €229,111.
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Available for interview:
Barry McDonald, REA spokesperson
barry@reamcdonald.ie 086 387 3800
Ed Dempsey, REA Ed Dempsey, 086 172 4449
Patrick Riney, REA Orchard, Rathfarnham, 087 2518588
Paul Grimes, REA Grimes, Merrion Sq, 087 2258678
Anthony McGee, REA McGee, Tallaght, 087 2799332
Media information: Darren Hughes, 086 293 7037, darren@mediaconsult.ie

Q2 2018 Average House Price Survey

The increase in supply of new homes in Dublin and commuter counties is having an effect on second-hand prices in some areas, the Q2 Irish Independent REA Average House Price Index has found.
The rate of increase in second-hand three-bed semi-detached home prices in Dublin city and county was just 0.8% in the last three months, with prices falling slightly in one suburb.
After rising by 12.5% in 2017, the average price of a second-hand semi-detached house in the capital has increased by just €5,000 so far this year and now stands at €443,000.

“Wherever we have new homes on the market, they are definitely having an effect on prices in the existing market as they operate in their own price structure, with buyers prepared to pay a premium for A-rated properties,” said REA spokesperson Barry McDonald.

“As a result, many of our agents in Dublin and suburban counties such as Meath have reported an increase in time taken to sell the average second-hand property and a slowdown in viewings, especially among first time buyers.

“As agents, our big challenge is to get vendors to accept the reality of the situation on the ground where sellers are not achieving the sort of inflated asking prices that they may expect for properties.

“In my own area, Lucan, we have seen the average three-bed semi price drop slightly by -0.6% (€2,000) in the past three months to €352,000, simply because of the selection of available new homes in the area.

“In the Celtic Tiger years, all prices rose across the board, but in 2018, the system is actually working and the only price inflation is in a new homes market that is concentrated in pockets.

“This is not a nationwide situation, as suburban Dublin is a sweet spot where there is serviced land available to build, plenty of financed buyers and baseline values that make it profitable for builders to develop new homes.”

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 to the close of last week.
The average semi-detached house nationally now costs €232,441, the Q2 REA Average House Price Survey has found – a rise of 1.5% on the Q1 2018 figure of €229,111.
Overall, the average house price across the country rose by 8% over the past 12 months – indicating that the market is continuing to steady after an 11.3% overall rise in 2017.
The commuter counties continued their recent steady growth with a 1.7% increase in Q2, with the average house now selling for €246,278 – a rise of €4,000 on the first three months of the year.
“Working from home has become part of the equation to beat both commuting and property for many buyers, according to REA Forkin in Wicklow Town who have seen prices rise by 3.3% to €315,000 in the last quarter,” said Mr McDonald.
“They are seeing increased demand from young Dublin couples in more rural locations like Aughrim and Rathdrum.

“Co-location has become a buzzword among buyers, and all almost all of their prospective rural purchasers mention working from home for three days a week and commuting to Dublin for the other two.”
The country’s major cities outside Dublin recorded a combined Q2 rise of 1.5%, with an average three-bed semi costing €247,500.
Galway City saw a 2.8% rise to €272,500 for the second quarter in succession, with the western city recording an 11.2% increase in the past 12 months with local
“Buoyant demand is continuing to drive interest in starter homes in Galway, with a  significant number of first-time buyers purchasing in estates all over the city as lending has loosened up,” said McDonald.
“Average Q2 selling prices were also 2.6% higher in Waterford City, where the typical semi-detached house is now fetching €200,000 and a shortage of supply is reported.
“First-time buyers are driving up prices due to the shortage of new builds and banks are tending to finance only in blocks of 12, and when they are sold, further finance is made available according to REA O’Shea O’Toole in Waterford City.

“The lowest growth in the past year has been in Cork City where prices have risen by 0.8% in Q2, and just 2.4% in the year, to a current average of €317,500.

“Our agents are reporting that a shortage of supply in mature areas, the deposit limit restrictions and the Help To Buy scheme driving first-time buyers to new homes have been factors in this figure.”

The highest increases were seen in the rest of the country’s towns, which experienced a 2% rise in Q2 to an average of €153,094 – up €3,000 in 12 weeks.
“These are areas where it is still largely not economic to build new homes, and the dwindling supply existing stock at lower rates is disappearing,” said McDonald.
“The highest rate of increase in the country came in Castlerea in Roscommon where agent Seamus Carthy reported rises of €10,000 to an average of €120,000 (9.1%) in Q2 as supply continues to constrict.
“This represents a 33% increase on the June 2017   where prices rose by €10,000 or 12% in Q1.”
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Available for interview:
Barry McDonald, REA spokesperson
barry@reamcdonald.ie 086 387 3800
Media information: Darren Hughes, 086 293 7037, darren@mediaconsult.ie

REA Launch Online Auction Platform

A leading estate agency group have launched a dedicated online auction platform which aims to reduce the time taken to sell the average property from months to weeks.

REA are now the first property group to offer an integrated online and offline property service, allowing vendors to switch between the two.

The REA Online Auctions platform allows all legal documents around a property sale to be uploaded in advance, removing the unnecessary delays that affect many private treaty sales.
 
With the addition of the online platform, REA now allow vendors to choose between selling their property through private treaty or online auction, or an amalgamation of both.

And crucially, because the Contract for Sale is made available online, purchasers and their solicitor can inspect the legal pack and any queries can be dealt with prior to the online auction.

“The typical private treaty route can take an average of six months from instruction to exchange of contracts because the system is not set up for speed,” said REA Chairman Eoin Dillon.

“However, with the REA Online Auction option, transparency and greater knowledge on all sides helps the sales process to be measured in weeks rather than months.

“The auction period can be as long or as short as is desired, ensuring full market exposure to an agreed timeline, and vendors with a house for sale by private treaty can switch to an auction option in order to secure a defined sale date.

“The Contract for Sale and other legal documents are uploaded by the vendor’s solicitor to the online auction platform allowing inspection by interested parties and their legal team.

“The agent uploads all the relevant property details to the online auction platform including the AMV, bid increments, deposit requirements and bidding duration.

“The fact that all legal queries are dealt with prior to the online auction gives buyers greater confidence in the bidding process and, more importantly, assists in bringing the sale to a successful conclusion.

“Bidders are required to provide a refundable Bidder Security Deposit of €5000 prior to the commencement of the online auction and the successful buyer pays the balance of the 10% deposit within a period of two days.

“In a normal private treaty situation, you could go sale agreed after 12 weeks, but by the time the engineers report is completed and the sales contracts issued and exchanged the process can take as long again.

“However, with an online auction, the process is instant, with bidders pre-authorising the REA agent to sign the sales contract on their behalf.

“Signed copies of the sales contract are sent to the both parties’ solicitors.”

The REA Online Auction platform can either handle individual sales or centrally managed portfolio sales.

REA is Ireland’s leading property group of Chartered Surveyors with 55 branches throughout the country, comprising some of the country’s longest established auctioneers and estate agents.

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Q1 2018 - REA Average House Price Survey

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 the Q1 Irish Independent REA Average House Price Index has found.
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.
And while there is both good demand and plenty of funded buyers in the market, REA agents are reporting that prices may have settled to a stable level of affordability.
While most REA agents in the capital reported that prices in Dublin’s postcode zones have been static in the first three months of the year, the only rises that were reported were in areas where prices were more affordable such Dublin 24 (+2% €260,000) and Lucan (+2% €352,000).
“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.
“There has been a 3% reduction in cash buyers in the market, with mortgage approved house hunters now making up 74% of purchasers, increasing the effect of the Central Bank rules on the market.
“We are seeing strong demand across the board, and homes are reaching sale agreed in just four weeks in Dublin – which is good news for both buyers and vendors.
“Combined prices in Dublin city and county rose by just 0.7%, driven by increases in north county areas Skerries (+2.8% €365,000) and Balbriggan (+1.9% €265,000), with prices being seen as more affordable than the city.”
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.
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 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.
Limerick City saw a 4.2% rise, with prices increasing from €192,000 to €2000,000 since December.
Average Q1 selling prices were also 2.9% higher in Galway City, where the typical semi-detached house is now fetching €265,000 and agents REA McGreal Burke reporting strong with ten buyers for every property on the market.
While Cork City registered a €5,000 (1.6%) increase in Q1 to bring levels to €315,000, prices remained static in Waterford City at €195,000.
“Agents in Cork City are returning their first quarter of growth in nine months – on a 3.3% annual increase – due to the difficulties that buyers find in breaching the gap between the deposit threshold and the €315,000 market value in the Leeside city,” said Mr McDonald.
“What Dublin can learn from Cork City’s experience is that there may come a point when the average price can represent a step too far over the €220,000 mortgage deposit limit.
“In Cork’s case, the area does not benefit from the higher wages available in the capital and the average house is taking twice as long to sell (10 weeks) than the national average.”
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.
The highest rate of increase in the country came in Cavan Town where prices rose by €10,000 or 12% in Q1.
“Our agent Peter Donohoe reports that prices are being driven by limited supply and competition between owner occupiers and buy to let investors in what is a rising rental market in the town,” said Mr McDonald.
“In Laois, we have seen rises of 6% in the opening quarter based on lack of supply and prices at €175,000 which are attracting the commuter market.
“In commuter counties such as Kildare, the biggest percentage rises are coming in towns such as Newbridge (2.3%) which recorded double the increase of Naas (1.1%) because at €225,000, property is nearer to the Central Bank’s deposit threshold.”

US buyers flock to REA New York Property Expo

American buyers’ interest in Irish property is growing very strongly, according to Real Estate Alliance who held their third US Property Show in New York last week.

The strength of the US market, which now forms over 22% of overseas enquiries for Irish property, was reflected in generating over 500 leads around the well-attended show.

“Increased wages in Ireland and the lure of better opportunities for returning emigrants has seen US property buyers flocking to secure homes and investment properties in Ireland,” said REA Chairman Eoin Dillon

“Many attendees were Irish people in their fifties who were enquiring about returning home due to the high price of education and health.

“We also met many young Irish people who were returning home to work, Irish families looking to return home and retirees looking to downsize.

“Enquiries from the US are now increasing hugely year-on-year, highlighting the return of emigrants who feel the time is right to come home.

“We also had a high number of enquiries from people interested in investment and holiday properties, and from siblings looking to group together to buy property in Ireland.”

This was the third successful US business trip for REA, who held an event in Boston last year, and is part of an overall plan to reach out to overseas buyers who represent an important market for Irish property.

“As part of our overall strategy to build up a network in the US, and engage with American purchasers, we also met with a number of buyer agents over the course of the week,” said Mr Dillon.

“During our time in New York, we met with many pre-registered buyers, buyer agents, investors, lawyers and Real Estate Investment Trusts (REITs).

“We expect many of those conversations to very quickly convert into sales, with a number of customers planning to talk further over the next two months and inspection trips already planned for specific properties.

“The average house price in the US in January, 2018 was $382,700 (€311,324), compared to our Average House Price survey national value of $277, 697 (€225,806) for quarter four, 2017, so there is obvious value for American buyers in Ireland.

“Education costs in America compared to Ireland were a constant topic in our conversations with potential buyers.

“As children grow towards college age, parents in the US may be facing costs of approximately $70,000 per year, with even secondary education costing a minimum of $15,000 per annum.”

Real Estate Alliance (REA) is Ireland’s leading property group of Chartered Surveyors with over 55 branches nationwide, comprising many of the country’s longest-established auctioneers and estate agents.

To register to list with REA and be included in ongoing promotions to the US see www.realestatealliance.ie/NewYork2018

Ends

For further information: Eimer O'Keeffe, Marketing Manager, REA, 086 8249040, eimer@rea.ie

Media enquiries:

Darren Hughes, MediaConsult, darren@mediaconsult.ie, 086 293 7037

Picture enclosed:
Sample caption:

***NO REPRO FEE***

REA board members Eamonn Spratt, Anthony McGee, Eoin Dillon (Chairman), Darina Collins and Des O'Shea pictured at the Real Estate Alliance New York Property Show last week at the Fitzpatrick Hotel Grand Central.

Auction Results: 28th Feb 2018

REA O’Connor Murphy held their first Munster & Connacht Auction of 2018 on 28th February at the Limerick Strand Hotel with 80% of properties selling on the day. This auction offered a selection of residential and commercial properties and land throughout Munster & Connacht regions. While attendance numbers were down due to inclement weather conditions brought by storm Emma, this did not deter bidders and we had a large number of parties avail of our telephone bidding service.  There were multiple bidders on each of the properties with average prices exceeded 17% above the minimum Reserves, in particular there was considerable interest in one property, an end of terraced house with a commercial unit to the rear operating as a car facility situated in Woodquay, Galway that had a minimum reserve of €430,000 and sold for €550,000. 

Our next auction is taking place on 12th April and will include a mix of residential/commercial properties. For further information please visit www.reaoconnormurphy.ie or contact us

on 061 279300

One-in-five property enquiries from overseas - survey

One-in-five enquiries into property for sale are now coming from abroad as the economy strengthens, a national estate agents survey has found.

However, Brexit, allied to the fall in the value of sterling, caused an 8% drop in the amount of property enquiries from the UK over the past year, according to the Real Estate Alliance nationwide survey on overseas enquiries and sales.

Enquiries from the UK now make up just 28% of all overseas calls to agents nationally – down from 36% a year ago.

However, some agents in Dublin have reported a rise in young Irish professionals making plans to leave the UK after spending a decade or so working in London.

Over 22% of overseas enquiries about Irish property are now coming from the United States, from a negligible base two years ago, while emigrants returning from Dubai and the Gulf States are featuring strongly on the annual survey for the first time.

“Property buyers from the US are increasingly securing homes and investment properties in Ireland, buoyed by a strong dollar and the lure of a resurgent economy for emigrants,” said REA spokesperson Healy Hynes.

Real Estate Alliance are offering Irish property vendors the chance to take advantage of this mini-boom by registering for the Alliance’s upcoming Irish Property Exhibition in New York.

“The average house price in the US in December 2017 was $398,900 (€320,520), compared to the REA Average House Price survey national value of $281,024 (€225,806), so there is obvious value for American buyers in Ireland,” said Mr Hynes.

“Our agents report that enquiries from the UK have dropped by 40% since the Brexit vote, and the subsequent drop in sterling value, in June 2016. Prior to that, UK calls made up over 50% of our enquiries.

“Our agents in Dublin and the inner commuter areas such as North Wicklow have noted an increase in young Irish professionals looking to secure properties after spending a decade or so working in London.

“But while the UK still forms 28% of our overseas business, 22% is now coming from the US, 16% from Australia, 17% from mainland Europe and 17% from other locations – especially Canada and Dubai.

“75% of our members report an increase in enquiries from overseas in the last year, with the average agent seeing a 20% rise in calls from outside Ireland.

“The biggest rises were seen in calls from Irish emigrants planning to return from Dubai and the Gulf States, which increased from 8% in 2016 to 12% in 2017.

“This has been a growth market in the past year as Irish ex-pats who have lived and worked in the Gulf States for the past number of years are starting to return home having saved sufficient deposits for housing.

“The resurgent economy is having a positive effect on the market with the number of overseas buyers enquiring about moving to live and work in Ireland rising by 20% over the past year.

Overseas calls now make up 20% of all enquiries across the REA group.

The survey showed a rise in overseas buyers purchasing homes in Ireland for investment purposes from 15% to 20% over the past year.

22% of buyers are purchasing a home for their eventual retirement while 8% cite a change of lifestyle as their reason for purchase.

The number of overseas buyers purchasing property as a holiday home has fallen from 20% to 16% in the past year, with agents citing sterling value and Brexit uncertainty as the chief reasons.

37% of sales to overseas purchasers are now for properties valued above €250,000 – a rise of 8% on the 2016 figure.

“Last year, sales of properties under €150,000 made up 45% of the market to overseas buyers, but this has fallen to 29%, reflecting the decrease in supply of suitable properties nationwide,” said Mr Hynes.

The first group to pioneer Irish sales in the US, REA are bringing thousands of properties to New York, giving a host of US buyers the chance to browse in comfort and talk to the experts on the ground.

The exhibition takes place in Fitzpatrick’s Hotel, Manhattan, from 5-8pm on March 8.

“Last year we brought our second Irish property exhibition to the US and met with over 400 potential buyers.

“We saw many Irish families looking to return home, retirees looking to downsize, and young Irish people who were returning home to work.

“We had a high number enquiries from siblings looking to group together to buy property in Ireland, as well as people interested in investment and holiday properties.”

Real Estate Alliance (REA) is Ireland’s leading property group of Chartered Surveyors with over 55 branches nationwide, comprising many of the country’s longest-established auctioneers and estate agents.

Further details on the REA US Property Exhibition, and a list of local agents, can be found on www.realestatealliance.ie/NewYork2018 or send an email to register for the event at info@rea.ie.

Ends

Available for interview:

Healy Hynes, REA spokesperson, healy@hynes.ie 087 263 2295

Other media enquiries:

Darren Hughes, MediaConsult, darren@mediaconsult.ie, 086 293 7037

Q4 2017 - House Price Index - Dublin City

The rate of increase in three-bed semi-detached home prices in Dublin slowed to 1.5% in the fourth quarter of the year as buyers look to new homes on the horizon, the Q4 REA Average House Price Index has found.
While prices in the capital’s postcode areas have risen by 12.5% in 2017 and stand at €438,000, the Q4 increase of €6,500 is over 60% down on the Q3 rate of 4.1%.
And local agents are predicting that property values will rise by 8% in the city in the coming year.
With more new homes developments coming to market, REA agents in the capital see buyers opting to pay a premium for modern build standards and the certainty of a selling price.
"With housing commencements expected to reach 15,000 this year for the first time since 2008, we are seeing real progress in the delivery of new home developments,” said Paul Grimes of REA Grimes who operate in Dublin City Centre, Skerries and Ashbourne and have a good overview of the north Dublin and East Meath markets.

“We are entering a less heated phase in the second-hand market because many buyers are now opting to put deposits on new homes that may not be completed until mid-2018.

“This, in turn, will play a part in freeing up the stock of second hand housing on the market."

New homes are proving very popular as they are A-rated and there are no difficult bidding wars which can be very stressful for buyers in an under-stocked market said agent Barry McDonald of REA McDonald in Lucan, who has predicted an 8% rise in 2018.

“New developments are typically not bought by investors, which means there is a greater concentration of owner occupiers in new estates, which means better kept homes and more stability,” he said.

A large number of investors who have entered the market in the south city recently according to Ed Dempsey of REA Ed Dempsey in Clonskeagh, who forecasts a 10% increase this year.

“Overall, the market appreciation will slow down slightly due to an increase in supply,” he said.

REA McGee in Tallaght predict an 8% increase in 2018, with an abundance of First Time Buyers coming to the market in Dublin 24.

“We are experiencing a higher volume of mortgage financed non-Irish residents opting for apartment living,” said Anthony McGee.

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.
The average semi-detached house nationally now costs €225,806, the Q4 REA Average House Price Survey has found – a rise of 1.8% on the Q3 figure of €221,861.
Overall, the average house price across the country rose by 11.3% over the past 12 months – compared to 7.7% nationally in 2016.
The survey also found that agents throughout the country expect prices to rise by 7.5% on average in the next 12 months.



Ends

Available for interview:   

Ed Dempsey, REA Ed Dempsey, 086 172 4449
Barry McDonald, REA McDonald, Lucan, 086 387 3800
Kevin Riney, REA Orchard, Rathfarnham, 087 298 8143
Paul Grimes, REA Grimes, Merrion Sq, 087 2258678
Anthony McGee, REA McGee, Tallaght, 087 2799332



Media information: Darren Hughes, 086 293 7037, Darren@mediaconsult.ie

Q4 2017 Property Price Report - Tipperary

The price of the average three-bed semi in Tipperary rose by 7.2% to €151,375 in the last 12 months, according to a national survey carried out by Real Estate Alliance.

And after prices increased by 2.6% between September and December 2017, local agents are predicting that property values will rise by 9.5% in the county in the coming year.
The average three-bed semi in Nenagh now costs €147,500 (+1.4% in 2017), Clonmel €167,000 (+4.4%), Newport €151,000 (+4.1%) and Roscrea €140,000 (+16.7%).
“There are increases in prices in some of the mature established areas in Clonmel,” said John Stokes of REA Stokes and Quirke in Clonmel.
“Any property under 200,000 is attracting excellent market appeal. First-time Buyers are active in the market and a considerable amount of people are trading up.
“There is a lack of supply for properties under €150,000-€200,000 with no building expected to start in 2018.”
REA Chairman Eoin Dillon of REA Eoin Dillon in Nenagh predicts that supply will tighten further with no new developments coming on stream till at least 2020.

Demand is just above supply in Roscrea, which is five years away from a new housing development commencing, according to REA Seamus Browne.

REA John Lee in Newport also reported a huge lack of supply of suitable houses on the market in the area.
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.
The average semi-detached house nationally now costs €225,806, the Q4 REA Average House Price Survey found – a rise of 1.8% on the Q3 figure of €221,861.
Overall, the average house price across the country rose by 11.3% over the past 12 months – compared to 7.7% nationally in 2016.

The survey also found that agents throughout the country expect prices to rise by 7.5% on average in the next 12 months.

“The heated market that we saw throughout much of 2017 has cooled somewhat and we are now in a period of more certainty,” said REA spokesperson Healy Hynes.
“A lack of supply is still the main driver of the market, with listings of second hand properties at a low level around the country.
“Anything that does go on sale is reaching sale agreed in a short period of time – five weeks on average and four weeks in Dublin city.
“However, this is not normal in a properly functioning market, where time periods of eight weeks to sale agreed are more common.”
The rate of increase in three-bed semi-detached home prices in Dublin slowed to 1.5% in the fourth quarter of the year as buyers look to new homes on the horizon.
The commuter counties also returned a restricted growth of 1.5% in Q4, and 10% overall for the year, following a relatively static 2016, with the average house now selling for €229,300.
The lowest increase in Q4 was reflected in the country’s cities outside of Dublin, where the grouping of Cork, Limerick, Waterford and Galway returned 1% growth, with average prices increasing by €2,375 to €238,625.
Towns throughout the rest of the country saw rises of 2.6% in the fourth quarter with the average three-bed semi now costing €146,633, up 12.3% from €130,600 in December 2016.

An increase in mortgage-approved buyers and the Help To Buy Scheme saw first-time buyers return to viewings in force over the past 12 months.

However, a shortage of suitable supply caused prices to appreciate, and REA agents in the capital are predicting that new homes will drive a bright outlook for the new year, freeing up some supply of second hand stock in the market.

Ends

Available for interview:   

Eoin Dillon, Nenagh, 087 2052 716

Seamus Browne, Roscrea, 0872499570

James Lee, Newport, 086 2351221

John Stokes, Clonmel, 086 8213777

Media information: Darren Hughes, 086 293 7037, Darren@mediaconsult.ie

REA Q4 2017 Property Price Report - Limerick

The price of the average three-bed semi in Limerick City rose by 8.5% to €192,000 in the last 12 months, according to a national survey carried out by Real Estate Alliance.
And after prices increased by 1.1% between September and December 2017, local agents are predicting that property values will rise by 8% in the city in the coming year.
The average three-bed semi price in Limerick County now stands at €148,000, an increase of 10.4% in 2017, and is predicted to rise by 6% in the coming year.
“Prices look set to increase in the first half of 2018, and we expect them to level off at this point due to the commencement of new home developments which will offer greater supply,” said Michael O’Connor of REA O’Connor Murphy.
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.
The average semi-detached house nationally now costs €225,806, the Q4 REA Average House Price Survey found – a rise of 1.8% on the Q3 figure of €221,861.
Overall, the average house price across the country rose by 11.3% over the past 12 months – compared to 7.7% nationally in 2016.
The survey also found that agents throughout the country expect prices to rise by 7.5% on average in the next 12 months.
“The heated market that we saw throughout much of 2017 has cooled somewhat and we are now in a period of more certainty,” said REA spokesperson Healy Hynes.
“A lack of supply is still the main driver of the market, with listings of second hand properties at a low level around the country.
“Anything that does go on sale is reaching sale agreed in a short period of time – five weeks on average and four weeks in Dublin city.
“However, this is not normal in a properly functioning market, where time periods of eight weeks to sale agreed are more common.”
The rate of increase in three-bed semi-detached home prices in Dublin slowed to 1.5% in the fourth quarter of the year as buyers look to new homes on the horizon.
The commuter counties also returned a restricted growth of 1.5% in Q4, and 10% overall for the year, following a relatively static 2016, with the average house now selling for €229,300.
The lowest increase in Q4 was reflected in the country’s cities outside of Dublin, where the grouping of Cork, Limerick, Waterford and Galway returned 1% growth, with average prices increasing by €2,375 to €238,625.
Towns throughout the rest of the country saw rises of 2.6% in the fourth quarter with the average three-bed semi now costing €146,633, up 12.3% from €130,600 in December 2016.
An increase in mortgage-approved buyers and the Help To Buy Scheme saw first-time buyers return to viewings in force over the past 12 months.

However, a shortage of suitable supply caused prices to appreciate, and REA agents in the capital are predicting that new homes will drive a bright outlook for the new year, freeing up some supply of second hand stock in the market.



Ends

Available for interview:   
Michael O’Connor, REA O’Connor Murphy, Limerick, 087 2597034


Media information: Darren Hughes, 086 293 7037, Darren@mediaconsult.ie

Q4 2017 Property Index - Kilkenny

Average three-bed semi price rises in Kilkenny County outstripped the rest of the country with a 23.3% increase in 2017, according to a national survey carried out by Real Estate Alliance.
The price of the average three-bed semi in rose to €203,500 in the last 12 months, and after prices increased by 3% between September and December 2017, local agents are predicting that property values will rise by a further 10% in the county in the coming year.
House prices in Kilkenny City alone rose by 27.4% in 2017, driven by a lack of supply of suitable homes on the market.
And REA Boyd in Kilkenny City are predicting that the continuing shortage of supply will increase prices by about 15% in the next year.
REA Grace in Callan predict that the market will get stronger with an increase in first-time buyers at viewings and more mortgages available.
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.
The average semi-detached house nationally now costs €225,806, the Q4 REA Average House Price Survey found – a rise of 1.8% on the Q3 figure of €221,861.
Overall, the average house price across the country rose by 11.3% over the past 12 months – compared to 7.7% nationally in 2016.
The survey also found that agents throughout the country expect prices to rise by 7.5% on average in the next 12 months.
“The heated market that we saw throughout much of 2017 has cooled somewhat and we are now in a period of more certainty,” said REA spokesperson Healy Hynes.
“A lack of supply is still the main driver of the market, with listings of second hand properties at a low level around the country.
“Anything that does go on sale is reaching sale agreed in a short period of time – five weeks on average and four weeks in Dublin city.
“However, this is not normal in a properly functioning market, where time periods of eight weeks to sale agreed are more common.”
The rate of increase in three-bed semi-detached home prices in Dublin slowed to 1.5% in the fourth quarter of the year as buyers look to new homes on the horizon.
The commuter counties also returned a restricted growth of 1.5% in Q4, and 10% overall for the year, following a relatively static 2016, with the average house now selling for €229,300.
The lowest increase in Q4 was reflected in the country’s cities outside of Dublin, where the grouping of Cork, Limerick, Waterford and Galway returned 1% growth, with average prices increasing by €2,375 to €238,625.
Towns throughout the rest of the country saw rises of 2.6% in the fourth quarter with the average three-bed semi now costing €146,633, up 12.3% from €130,600 in December 2016.
An increase in mortgage-approved buyers and the Help To Buy Scheme saw first-time buyers return to viewings in force over the past 12 months.

However, a shortage of suitable supply caused prices to appreciate, and REA agents in the capital are predicting that new homes will drive a bright outlook for the new year, freeing up some supply of second hand stock in the market.


Ends

Available for interview:   

Robbie Grace, REA Grace, Callan, 086 8297189
Michael Boyd, REA Boyd’s, Kilkenny, 087 2611699


Media information: Darren Hughes, 086 293 7037, Darren@mediaconsult.ie

REA Q3 2017 Average House Price Index

The average three bed semi-detached house nationally has risen by 3.1% to €221,843 since June, the Q3 REA Average House Price Survey has found.

The REA Average House Price Survey concentrates on the up-to-date actual sale price of Ireland's typical stock home, the three-bed semi, giving a real-time picture of the property market in towns and cities countrywide to the close of last week.

Overall, the average house price across the country has risen by 11.2% over the past 12 months – just under twice the 6% increase registered to the full year to September 2016.

The average three-bed semi-detached home in Dublin city’s postcode districts has jumped in value by €17,000 in the three months to the end of September, and now costs an average of €431,500.

The 4.1% rise over the last quarter means that prices in the capital’s postcode areas have increased by 15.6% over the past year, with properties selling in an average of four weeks after hitting the market.

“Supply is the main driver of these continuing price rises with our agents reporting that the volume of listings is down around the country,” said REA spokesperson Healy Hynes.

"In what is becoming a vicious circle, families looking to trade up are not seeing the larger homes becoming available while empty nesters looking to downsize do not have a ready supply of smaller homes emerging on the market.

“To complete the equation, first-time buyers are not seeing the three-bed semis coming through in sufficient numbers.

“Although planning permissions rose by 55% year-on-year in Q2, the 3,630 houses approved will not be on the market for the next two years, and even then this year’s overall figure will be less than half is what is required on an annual basis.

“Looking at the supply figures, it could be 2020 before we see any normalisation in the marketplace.
“Our agents are reporting that where there are new builds coming on stream, the market is extremely active and the first-time buyer is opting to pay a premium of 15-20% higher than the second-hand rate.

“This is having a knock-on effect into the second-hand market with a more discerning buyer now concentrating heavily on energy ratings.

“Where the price is right, we are seeing a good flow of credit into the market, with cash buyers now just making up 20% of the commuter market and sales in Dublin and surrounding counties closing in just four weeks – down from an average of seven a year ago.”

The commuter counties continued to rebound after a relatively static 2016 and saw an increase of 2.7% this quarter, with the average house now selling for €229,300.

However, once again the influence of house pricing relative to the deposit threshold is illustrated in a 4.7% rise in Meath where the average is €234,375 almost twice the percentage increase registered in Kildare (1.8%) and Wicklow (2.4%) where average house prices are above the €260,000 mark.

The commuter flight has once again spread as far as Laois where REA Seamus Browne reports a €10,000 increase in average prices over the past three months as buyers leave Dublin and Kildare in the quest for suitable housing at the right price.

The slowest growth nationwide was registered in the main cities outside of Dublin, as while Galway at €255,000 (up 4.1%) and Limerick at €190,000 (up 2.7%) showed growth, Cork city prices remained static over the three-month period, and just 5.1% up on the year.

The country’s smaller rural towns situated outside of Dublin, the commuter belt and the major cities out-performed the national index with prices rising by an average of 2.8% over the quarter to €142,867.

House prices in Longford have risen by 32% in the past year – but the county still has the cheapest semi-detached houses in the country at an average of €90,000, up from €68,000 in September 2016.
Longford, Leitrim (€97,000) and Donegal (€93,750) are the three counties where properties can be still be purchased for a five-figure sum.

Despite the absence of sterling buyers because of Brexit and the exchange rate, prices in some parts of Donegal have risen by an average of €6,250 since June, fuelled by an acute lack of supply of suitable properties.

Brexit is having an unusual effect on the rental market in West Cork where former sterling buyers are now opting to rent on a long-term basis, creating added pressure on an under-supplied market, according to REA Celtic Properties.

Ends

Available for interview:   
Healy Hynes, REA spokesperson, healy@hynes.ie, 087 263 2295

Media information: Darren Hughes, 086 293 7037, Darren@mediaconsult.ie

REA Predictions for House Prices 2018

The emergence of new homes as a real option for buyers for the first time in a decade is  set to drive a less-heated property market in 2018, estate agents have predicted.

A survey carried out for the Irish Independent by the Real Estate Alliance Group has found that agents throughout the country expect prices to rise by 7.5% on average in the next 12 months.

Many new developments concentrated on the east coast, with Dublin agents predicting that prices in the capital will rise by 8.2% next year.
This comes off the back of a 2017 which saw prices increase by 11.3% nationally and 13% in Dublin city and county before slowing down somewhat across the country in Quarter Four.

Agents in two of the three main cities outside Dublin are optimistic about 2018, with rises of 8% predicted in Limerick (8.5% in 2017) and 7% in Galway, which experienced 9.6% growth in 2017.

Galway agents REA McGreal Burke are expecting a lot of new developments which are almost at construction stage to dominate the market in the back end of the year, easing the poor supply level in the city.

However, Cork is looking at a more modest 5% increase, on a par with that achieved in 2017.

REA O’Donoghue Clarke report that the Leeside city is suffering from a lack of second hand supply, fuelled by the effects of the Central Bank’s €220,000 deposit limit in a city where average house prices are €310,000.

The outlook for the commuter areas surrounding the capital is continuing to improve after a cautious 2017, which saw prices rise by 10%.

Counties around Dublin are predicting a rise of 7.2% on average after two years which saw Kildare and Wicklow lag behind national rates of increase on 7%, but Meath outstrip the country on 14% due to the lower average house cost relevant to the Central Bank limit.

An increase in mortgage-approved buyers and the Help To Buy Scheme saw first-time buyers return to viewings in force over the past 12 months.

However, a shortage of suitable supply caused prices to appreciate, and REA agents in the capital are predicting that new homes will drive a bright outlook for the new year, freeing up some supply of second hand stock in the market.

The Luas has proved to be a huge driver of interest with the Cross City line and extension to Broombridge opening up a new range of commuting and living options.

There is still less appreciation anticipated in the upper ends of the family home scale as serious issues around the income multiplier and the deposit rates put the brakes on many second-time buyers trading up.

“Our members anticipate that there will be an increase in new homes on the market in 2018, which will have a positive effect on a market that is under-supplied at the moment,” said REA spokesperson Healy Hynes.

“As an example of supply driving inflation, Kilkenny was Ireland’s highest rising county in 2017, with an increase of 23.3% in the price of the average semi-detached house.

“The increase was even higher in Kilkenny city where REA Boyd reported a 27% upturn in 2017, and is predicting a further 15% rise in 2018 – completely due to lack of supply.

“In areas such as Laois, prices are still 10-15% below breakeven for new developments, and low supply led to 18% rises in 2017, while some counties are predicting that it could be five years before they see new developments.

“Figures from the Property Services Regulatory Authority show that 2017 (47,000 units to date) is just about on a par with 2016 (49,720) in terms of property transactions.
“That is 40% below what it should be in a normal market, which should see 80,000 properties changing hands.
“While the Help To Buy Scheme has had a positive effect, we would like to see the banks taking a more pragmatic view of people’s long-term rental payments in terms of mortgage applications.
“The provision of social housing by county councils is one of the major keys to increasing supply and relieving pressure on rental markets.

“The lack of local authority house building is driving an ever-upward spiral in rental demand, which in turn is locking people into a cycle where they cannot save for their own property.”

The return of investors to the market has been reported in Dublin, particularly on the southside of the city where REA Ed Dempsey in Clonskeagh is predicting a 10% rise in 2018, with the market slowing down due to an increase in supply.

REA McGee in Tallaght are predicting 8% growth in Dublin 24 due to an abundance of first time buyers entering the market and a high volume of non-Irish buyers opting for apartment living.

While agents in Donegal are predicting a 5% increase generally, REA McElhinney in Bundoran feels that uncertainty over Brexit and the poor sterling exchange rate will lead to no growth in 2018.

REA Seamus Carthy in Roscommon is predicting that supply may well dry up if the State does not act to aid the development of new homes.

“We are going to hit a brick wall with supply as developers can't get back in at an average price of €145,000 in this area. Supply is going to totally dry up as the Government is taking too much off the costs of building,” said Seamus Carthy, who reports that values for any property under €150,000 is increasing at speed.

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