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:
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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