The price of the average three-bed semi in Galway City is expected to rise by five per cent in the next 12 months, according to a survey carried out by Real Estate Alliance.
Prices in the city rose by 9.7 per cent to €282,500 in 2018 – with a rise of 2.7 per cent between September and December, the biggest national quarterly city increase.
In County Galway, the price of a three-bed semi in is expected to rise by three per cent in 2019. County prices rose by 8.1 per cent to €160,000 in 2018 – with no change between September and December. 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 second-hand property market in towns and cities countrywide.
“The Galway City market remains buoyant, however, it is taking a little longer to get sales closed,” said Kevin Burke of REA McGreal Burke in Galway City, where time taken to sell has increased from four to seven weeks.“At the higher price points, sales are slower as the number of cash buyers has dropped.
“Stock remains an issue, Brexit aside, we feel the Galway City market will improve. Growth may be slower than last year, but prices are expected to maintain an upward trajectory. In County Galway, the market was stable towards the end of the year with sales taking a couple of weeks longer to complete.
“The Loughrea markets remain strong and we expect growth to continue in 2019. “The number of 100 per cent cash buyers has diminished and levels of mortgage approved purchasers is not growing.“Demand is high from first-time buyers and for lower-priced properties, but when a trade-up or asset exceeds €300,000 the sale takes longer,” said Mr Burke.
The average semi-detached house nationally now costs €236,287, the Q4 REA Average House Price Survey has found – a rise of 0.6 per cent on the Q3 2018 figure of €234,284.Overall, the average house price across the country rose by 4.6 per cent in 2018 – a decrease on the 5.4 per cent recorded to September and indicating that the market is continuing to steady after an 11.3 per cent overall rise in 2017.Growth in the commuter counties also slowed to 0.38 per cent in the last three months – an annual rise of 4.18 per cent – with the average house now selling for €249,472.
This is an annual rise of €10,000 and growth of €2,000 in the last three months.The country’s major cities outside Dublin recorded the biggest rise of the quarter at 1.25 per cent, an annual increase of 5.81 per cent, with an average three-bed semi costing €252,500.
The highest annual increases (7.7 per cent ) were once again seen in the rest of the country’s towns which rose in selling price by an average of €10,000 in 2018 and which experienced a 0.85 per cent rise in Q4 to an average of €157,717.
“In these areas, you largely have the perfect storm of affordability within the 10 per cent deposit range, and no new homes as it is still uneconomical to build in many places,” said REA Spokesperson Barry McDonald.