Dublin City second hand property prices decreased by an average of €4,500 in the past three months, the Q2 Irish Independent REA Average House Price Index has found.
The price of a three-bed semi-detached house in Dublin city registered a second consecutive quarter fall (-1%) since the end of March, and -2.2% compared to June 2018.
The price of the average three-bed semi-detached house in the capital’s postcode districts now stands at €433,000.
“Time taken to reach sale agreed in Dublin is now eight weeks in the city and nine weeks in the county – reflecting the impact of new homes developments and the difficulties that people are experiencing in obtaining mortgage approval,” said REA spokesperson Barry McDonald.
“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.
“As a result, many of our agents in Dublin and suburban counties such as Meath have reported price falls and an increase in time taken to sell the average second-hand property and a slowdown in viewings, especially among first time buyers.
“The second-hand market remains quite price sensitive, due mainly to the Central Bank restrictions, with demand for properties priced at under €250,000.
“Areas such as South County Dublin have fallen by €6,500 (-1.6%) in three months to €419,000, while North County Dublin areas such as Swords, Skerries and Balbriggan have remained static with prices averaging €322,500.
“There has been a further 2% reduction in cash buyers in the market in the past three months, with mortgage-approved house hunters now making up 83% of purchasers, increasing the effect of the Central Bank rules on the market.
“Looming over what has been a vibrant market up to now is Brexit, which has been cited as a factor in the longer decision making capital and also holiday home locations around the country.”
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.
The average semi-detached house nationally now costs €236,028, the Q2 REA Average House Price Survey has found – a rise of 0.05% on the Q1 2019 figure of €235,898.
Overall, the average house price across the country rose by 1.54% over the past year – a decrease on the 2.96% recorded to March and an indication that the market is continuing to steady after an 8% overall annual rise to June 2018.
Prices rallied slightly by 0.1% in the commuter counties in the last three months, with the average house now selling for €249,167 – an annual rise of 1.17%.
The increased availability of new homes has had a suppressing effect on prices in some commuter areas such as Kildare, North Wicklow and Meath, where all four REA agents have reported price falls in the quarter.
REA T&J Gavigan in Kells (-5.26%, €180,000) have reduced asking prices from an average of €190,000 in March in order to stimulate demand, while REA Grimes in Ashbourne report -0.8% falls from €302,500 to €300,000.
Agents in Trim have seen the average three-bed semi fall by €7,000 (-2.7%) in three months to €250,000, while it is a similar story in Navan where prices fell by -2.1% to €230,000.
“Overall, the level of activity has decreased with buyers looking at a larger range of properties, slowing the time taken to sell to 10 weeks in towns such as Navan and Trim,” said Barry McDonald.
“In Louth, we have reports of investors returning to the market in both Dundalk and Drogheda, chasing value in second-hand properties, while an increase in supply of new homes is soaking up the first-time buyer market.”
Prices in the country’s major cities outside Dublin were relatively static with agents in Galway and Limerick reporting no change due to an increase in supply and new homes developments.
Cork City showed a slight rise of 0.8% to €320,000 with agents REA O’Connor Murphy anticipating a full year increase to 3%, in spite of an increase of new homes developments in the area.
Waterford City reported a quarterly increase of 2.4%, with tightening supply rising prices to €215,000, up €5,000 from the end of March.
“The highest annual increases (5.3%) were once again seen in the rest of the country’s towns which rose in selling price by an average of €8,000 in the past year and 1.08% in the past three months to €161,138.
“However, like the major cities outside Dublin, our country towns report a 25% annual increase in time taken to sell from six to eight weeks.
“REA Celtic Properties in Bantry are reporting that Brexit has had a large effect on the market of properties over €300,000. Demand for those priced under €200,000 is active, but the market has slowed to an average selling time of 14 weeks.
“Longford recorded the largest annual rise at 21.9%, with prices increasing from €96,000 to €117,000 in 12 months, and 1.7% since March.
“In Leitrim, REA Peter Donohoe has seen prices jump from €80,000 to €90,000 in the past three months due to increased demand and limited supply – an increase of 12.5% on Q1 and 21.8% on the full year.
“In Tipperary, both REA John Lee in Newport (2.9%) and REA Eoin Dillon (1.74%) in Nenagh report rises in prices to €175,000, but also increases in time to sell.”
Ends
Available for interview: Barry McDonald, REA spokesperson, barry@reamcdonald.ie 086 387 3800
Media information: Darren Hughes, darren@mediaconsult.ie, 086 293 7037
