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House prices rise by €100 a day as real estate heats up to boom levels

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Home prices are rising by almost €100 a day as the market shows no signs of slowing down.

The Q1 Irish Independent The REA Average House Price Survey found that average house prices nationwide rose 3.16 percent in the first three months of the year, consistent with increases of 1 percent per month during the boom.

Nearly 60 per cent of all buyers were first-time buyers, a figure that rose to 76 per cent in Dublin as mortgage approved people struggle to get a foothold on the housing ladder.

Two other house price surveys released by Daft.ie and MyHome.ie also show ongoing house market pressures with asking prices rising across the country.

the Irish Independent The REA Average House Price Survey focuses on the actual selling price of Ireland’s typical existing three bed semi detached house. This is intended to provide an accurate and up-to-date picture of the used real estate market in the nationwide cities and communities.

Today’s report shows that the price of a three-bedroom semi-detached home has risen by nearly €9,000 to €278,500 nationwide in the last three months. That’s the equivalent of around €100 per day.

There was an annual increase of more than 14 percent, approaching the average level of €300,000 at the height of the boom in 2006.

Counties outside of the major urban areas continued to see large price hikes amid a renewed focus on working from home caused by the Covid pandemic. However, actual selling prices in Dublin remain the highest at an average of €481,250.

“We are now approaching and in many cases exceeding Celtic Tiger prices in the capital, with the market being driven by frustrated first-time buyers,” said REA spokesman Barry McDonald.

“Despite signs of an increase in available stocks in recent weeks, sales prices are still increasing across all price ranges.

“Affordability is key now, and the highest growth rates are being experienced in areas where homes are available for less than the average county price.”

The country’s other major cities saw increases averaging 2.2 per cent, mostly in line with Dublin, while Waterford city achieved a 6 percent price increase, with the average three-berth twin cabin rising €15,000 to €265,000, driven by strong demand from outside buyers.

In the Dublin metropolitan areas, prices increased by 4.47 per cent or an average of €13,000 to €305,000. That was twice as much as in the capital.

In the rest of the country, where prices rose 3.4 percent to an average of €196,569, the survey found that one in three shoppers was from outside the country as new working conditions allow for a shift in attitudes in home countries.

In Carrick-on-Shannon in Leitrim, two-thirds of buyers are new to the area, according to REA Brady, Carrick-on-Shannon.

There have been significant price increases in Counties Cavan (8.3 percent), Mayo (8.2 percent) and Galway (8.7 percent), where Agent REA McGreal Burke has noted the return of younger generations to rural Ireland, increasing a purchasing power entails.

Meanwhile, 75 percent of home sales went to first-time buyers in Cavan Town. Homes there rose by €15,000 to €175,000 in three months and the sale was agreed in an average of two weeks, according to REA Peter Donohoe. In Killarney, brokers REA Coyne and Culloty are reporting just 19 homes for sale among all estate agents in the town – the lowest number on record with no new developments coming on stream.

House prices rose an average of 2.4 percent in the first three months of 2022, according to the latest Daft.ie Sales Report released today.

According to this, the nationwide average list price in the first quarter of 2022 was €299,093, an increase of 8.4 percent compared to the same period in 2021 and just 19 percent below the peak of the Celtic tiger.

Just 10,000 homes were listed for sale on March 1, another new low in a row dating back to July 2006.

Ronan Lyons, Economist at Trinity College Dublin, said: “House price inflation remains stubbornly high – with Covid-19 upsetting a sort of equilibrium that had emerged with prices being broadly stable in 2019 but rising since.

“As has been the case time and time again for the past decade, rising prices reflects a combination of strong demand and very weak supply.

“Both new and used supply remain weaker than expected before the pandemic. This, combined with stronger-than-expected demand due to accidental savings during the lockdown, has pushed prices higher.

“Additional supply – of all types of housing, for sale, but also market rents and social rental housing – remains the only real solution to solving Ireland’s chronic housing shortage.”

And a separate report from MyHome.ie/Davy also suggested that the housing market squeeze is unlikely to ease in the first quarter of the year. National annual asking price inflation is now at 12.3 percent.

Conall MacCoille, ccalled eEconomists at Davy said double-digit inflation is now likely to persist until at least mid-year.

“The overall picture of the market in early 2022 remains similar to last year: impaired supply coupled with resilient demand due to the strong Irish labor market.”

https://www.independent.ie/business/personal-finance/property-mortgages/house-prices-soaring-by-100-a-day-as-property-heats-up-to-boom-time-levels-41493411.html House prices rise by €100 a day as real estate heats up to boom levels

Fry Electronics Team

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