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.

Ends

Q4 2017 REA Average House Price Index

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 Irish Independent 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%.
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.

“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.
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 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 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.
However, once again the influence of house pricing relative to the Central Bank’s €220,000 deposit threshold is illustrated in a 14.7% annual rise in Meath where the average is €238,000 – almost twice the percentage increase registered in Kildare (7.3%) and Wicklow (7.5%) where average house prices are above the €260,000 mark.
Agents in Trim report that the because their market is comprised of mostly mortgage buyers, they saw a slowdown in Q4 after a year of almost record 24% price rises.

“Demand is strong in Trim for starter homes and with no new homes for sale in the area, REA TE Potterton report that the second-hand market has been buoyant, with commuters moving prices from €195,000 to €242,000 in 12 months,” said Healy Hynes.
“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.
“Agents in Cork City are returning their third quarter of flat growth – on a 5% annual increase – due to the difficulties that buyers find in breaching the gap between the deposit threshold and the €310,000 market value in the Leeside city.
“Cork city does not benefit from the higher average wages available in the capital and an the average price represents a step too far over the €220,000 mortgage deposit limit cap for some buyers, with our agents reporting properties taking up to 10 weeks to sell, double the national average.
“Galway agents have seen prices grow by 9.6% annually, but just 1% in Q4, with prices at €257,500.
“Limerick has seen 8.5% growth in the year (1.1% to €192,000) in Q4 which Waterford saw prices rise by 2.6% in the quarter to €195,000 and 8.3% on the year, driven by scarcity in supply according to local agents.”
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.
Three-bed semis in Cavan town appreciated in value by a massive 33% in 2017, according to local agent REA Peter Donohoe.
Three-bed semis in the town came from a base of €105,000 a year ago to €140,000 now, with prices increasing by 12% (€15,000) in Q4 alone – again fuelled by a combination of low supply of suitable housing and pricing within affordable levels.
The rise of mortgage-financed non-national buyers is playing an increasing role in the housing market, especially on the east coast in markets as diverse as Dublin 24 and Wexford.
REA McGee in Tallaght has reported a 20% increase in non-national buyers, who are especially interested in apartment living.
REA McCormack Corish in Wexford have reported a 40% increase in the number of non-national buyers who are extremely well organised and always have their mortgage in place and deposits ready to go, according to Robert McCormack.
Ends

Available for interview:
Healy Hynes, REA spokesperson
healy@hynes.ie 087 263 2295
Media information: Darren Hughes, 086 293 7037, Darren@mediaconsult.ie