Three seperate surveys published this week have shown the property market in Galway has performed strongly so far this year with asking prices rising and the time to taken to sell a property reducing.
Lack of supply of new homes was cited as a reason for this market surge, while one survey indicates an increase in bank lending, particularly in areas like Galway.
According to figures released by online property website daft.ie, the average cost of a new home in Galway was €168,606 in the second quarter, representing a five per cent increase on the same period last year compared to falling prices in other cities like Limerick (€124,203, down 8.5 per cent) and Waterford (€106,699, down 3.7 per cent).
A survey by Myhome.ie found the recovery of the property market, particularly in Galway city, gained momentum between April and June this year with the median asking price increasing by three per cent, representing the first positive quarterly growth since 2007. The median asking price in Galway city is now €170,000, while in the county it remains unchanged at €160,000.
The Myhome.ie survey also revealed that four-bed semis throughout the county rose by 5.7 per cent to €185,000 while the prices for three-bed semis fell by 17.5 per cent to €140,000 representing the biggest fall nationwide for a house of this type.
Author of the report Caroline Kelleher, from DKM Economic Consultants, said: “Supply constraints are clearly a key factor in Dublin and other markets like Galway and these would appear to be driving the current price increases. Given the time lag in addressing supply issues it is likely prices will continue to rise in these areas for some time to come”.
The third survey this week, carried out by Real Estate Alliance, also found that the market in Galway is showing improvement, with the average time to sell a property dropping from 12 weeks a year ago to just four weeks now. However, there are some conflicting figures with regard to house prices, with the REA Average House Index showing that the average price for a three-bed semi in Galway has risen by 11.11 per cent in the first six months of the year. In contrast to the Myhome.ie survey, the REA reporst that the average price of three-bed semi in the county now stands at €200,000, a rise of 17.5 per cent over the past 12 months. It further found that in Galway city, the price of a three-bed semi has risen by 15.54 per cent to an average price of €182,353 in the first six months of the year.
A survey of 50 REA members nationwide also reported a 20 per cent increase in mortgage-financed sales indicating that banks are lending more than before. According to REA CEO Phillip Farrell: “Nowhere is the increase in bank lending more keenly felt than in the commuter belt, Cork and Galway, with 55 per cent of all sales now being financed by mortgages.”