Price of a three-bed semi continues to rise

The price of the average three-bed semi in Westmeath has risen 7.14 per cent to €150,000 in the last three months, according to a national survey carried out by Real Estate Alliance.

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 end of the third quarter.

The average three-bed semi nationally now costs €200,093, an increase of €4,732 since the end of June. This is a rise of 6.37 per cent against the same time last year.

Prices in Dublin city grew by 2.75 per cent to €373,333 since June – almost twice the growth experienced in the same area in the second quarter, as buyers chase a scarce supply of suitable housing.

Prices in the tier containing commuter counties and the main cities of Cork and Galway have risen by an average of just under €3,000 to €217,176, while those in the rest of the country have increased by nearly €5,000 to €133,268.

“We are seeing little or no increase in supply nationally, with an increase in funded buyers fueling the market in the short term,” said REA chairman, Michael O’Connor.

“Many of our agents are now reporting some buyers are returning to the market having achieved a level of savings, and that there is an increase in mortgage-funded purchases.

“The average amount of cash buyers has fallen by 3 per cent to 33 per cent nationwide, but in Dublin City that figure is down by 7 per cent in three months, with 72 per cent of transactions now mortgage-funded.

“The early effects of the Central Bank restrictions had previously seen prices drop in the capital in the year to the first quarter of 2016, but a combination of a longer time period to save and pressure on supply is manifesting itself in price growth. Our agents are also reporting that many first-time buyers seem to be holding fire in the hope of increased incentives in the upcoming Budget.

“The Central Bank’s mortgage deposit rules are still being keenly felt in the commuter areas, with most rises occurring in towns where three-bed semis are available for under the deposit threshold of €220,000.”

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