Lack of supply continues to drive up house prices
The price of the average three-bed semi in Galway City has risen 2.1% to €240,000 in the last three months, according to a national survey carried out by Real Estate Alliance.
The REA Average House Price Survey concentrates on the actual sale price of Ireland's typical ‘staple diet’ of first-time buyers, the three-bed semi, giving an up-to-date picture of the property market in towns and cities countrywide for the first three months of the year.
The average asking price for Galway City is €240,000, up 2.1% since the end of last year, while the comparative figure for the county is €132,000, up 1.5% on the end of last year.
“Demand continues to grow and supply remains static. The number of enquiries is increasing and demand for new-builds shows greatest growth because of the help-to-buy scheme,” said Kevin Burke of REA McGreal Burke in Galway.
Overall, the average house price across the country has risen by 10.9% over the past 12 months – a marked increase on the 7.7% rise registered to the end of December 2016.
The average three-bed semi-detached in Dublin city now costs €404,167, a rise of €15,000 (3.9%) in the last three months and an increase of 12.8% over the past year, the REA Average House Price Index has found.
“The easing of the Central Bank restriction on lending for first-time buyers has had an immediate effect on the market with a large rise in numbers at viewings and potential buyers with mortgage financing.
“The biggest percentage increases over the past year came in the country’s smaller rural towns situated outside of Dublin, the commuter belt and the major cities,” a spokesperson said.
Prices here rose by an average of 12.9% over the year, with a three-bed semi now costing €136,194 – an increase of 3% in the past three months.
For more, read this week’s Connacht Tribune.