House price increases in lower-priced counties soared above the national average in the first three months of the year as buyers chase affordability, the latest REA Average House Price Index has found.
The lowest housing supply in two decades has sparked significant price competition in counties such as Longford, where buyers are prepared to move for hybrid working opportunities in homes selling at an average of €181,700 – a rise of €7,700 (4.4%) in 12 weeks.
Similar rises have been reported in Cavan and Tipperary, with prices up €17,500 (7%) in Nenagh in the first quarter of 2024.
The actual selling price of a three-bed, semi-detached house across the country rose by 1.3% in this period to €308,235.
The REA Average House Price Index concentrates on the sale price of a typical stock home, the three-bed semi, giving an accurate picture of the second-hand property market in towns and cities countrywide.
Prices in Dublin city rose by 1.1% in the last three months, meaning that the average three-bed semi in the capital is now selling at €517,333 – an increase of 3.8% in the last year.
“There continues to be strong demand throughout the country as buyers compete for the lowest supply of residential property in two decades – despite the high level of values and interest rates,” said REA spokesperson, Barry McDonald.
“On the positive side for potential homeowners, the Vacant Property Refurbishment Grant has finally kicked in, opening up a market for homes in need of improvement.
“These were the type of properties previously really hard to sell with people afraid of refurbishment costs, limiting the market to builders and developers,” he said.
“If a home is declared vacant for two years or more, and it qualifies under the scheme, buyers know they can avail of a grant for refurbishment of up to €50,000 and up to €70,000 if there is a structural issue.”
Major cities outside the capital experienced the highest rise in the survey for Q1 – up by an average of over €5,000 in the last three months. The 1.8% increase is equivalent to an average selling price of €328,750 – with the annual rate of increase at 6%.
Homes in commuter counties rose by 0.6% over the past three months to an average of €321,667, with a 1.3% rise in Kildare and prices relatively static in Meath, Louth and Wicklow.
Longford experienced the highest rise per county, with average three bed semis now selling at €181,700.
Local agent Joe Brady said that Longford’s accessibility to Dublin is still a big draw for those who are hybrid working.
“We expect a rise in values by as much as 5% this spring, based on current sales. To date, there are no new homes on the market in Co Longford and it may be late 2024 or into 2025 before we see more new supply,” he said.
Nenagh in Tipperary saw prices increase by 7% to €265,000 in 12 weeks – a rise of €17,500 – as extreme shortages of supply saw intense competition for each house, according to REA agent Eoin Dillion.
Article Source – House prices spike in counties Cavan, Longford and Tipperary – RTE
