Asking prices for 3-bed semis in Galway are up almost 25%
The average asking price of a three-bed semi-detached house in Galway has increased by almost one-quarter since the beginning of the year.
At the moment, the average asking price stands at €220,000 – that’s an increase of more than 22% since the beginning of the year, and 10% over the past three months alone.
According to the Real Estate Alliance ‘Average House Index’ has found, there is strong interest in good quality homes – mostly from cash buyers – but mortgage-buyers are on the increase.
The Real Estate Alliance Average house index concentrates on Ireland's typical stock home, the three-bed semi, giving a picture of the property market in towns and cities countrywide.
The average price of a three-bed semi is now €179,981 nationally including Dublin, an increase of €26,925 (17.6%) on the December 2013 of €153,056.
Philip Farrell, Chief Executive of REA said: “Prices are continuing to rise apace in Dublin, but our agents are reporting that the panic buying seems have gone out of the market, with less people at viewings and houses taking a week longer on average to sell.
“The three-tier market that REA surveys have identified is still continuing, with the commuter areas outside Dublin, and larger urban areas such as Galway and Cork growing at twice the rate in the first nine months (21.9%) than the rest of the country at 11.5%,” said Mr Farrell.
According to the survey, there has been a sharp rise in the amount of private homes for sale nationally, with the percentage of distressed properties on the market dropping for the first time in the life of the survey.
There is evidence that the banks are financing house buyers to a greater extent with the amount of cash transactions dropping from an average of 66% in December 2013 to 50% in September 2014.
“We are also seeing investors being influenced by the end of December deadline for obtaining Capital Gains Tax relief over the next seven years.
“We also feel that the recent proposals on mortgage finance announced by the Central Bank could have a direct impact on the market from January 2015,” said Mr Farrell.