The price of the average three-bed semi-detached house in North Dublin has risen a whopping 5.6% to €282,500 in just the past three months, according to a national survey carried out by Real Estate Alliance.
This is due to the lack of housing supply in Dublin at the moment, causing high demand with more first-time buyers holding out for new developments.
According to John Cumisky from REA Cumisky in Balbriggan, this is hugely telling that the situation may continue.
“We have seen a rise of 9.1% in the first quarter, with three beds rising by €20,000 to €240,000 – and bigger demand to come with many first-time buyers still holding out for new building schemes due to the Help To Buy Scheme.”
The average semi-detached house nationally now costs €209,944, the Q1 REA Average House Price Survey has found – a rise of 3.5% on the Q4 2016 figure of €202,926.
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 Q1 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.
However, the biggest percentage increases over the past year came in the country’s smaller rural towns situated outside of Dublin. 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.
According to REA spokesperson, Healy Hynes:
“There has been a recovery in bank lending, which has been reflected in the purchasing end, but the accelerated figures in the Dublin market particularly, show that we are moving into a vendors’ marketplace.”
“However, we need to look at these figures in relation to the market where stock levels are at their lowest nationwide since January 2007. At a current average price of €136,194, and an annual compound rise of 12.9%, it will be 2021 at the earliest before it becomes economic to build outside the cities.”