By Zainab Boladale
Housing prices in Dublin have increased by 11% over the last year, according to the Real Estate Alliance.
A three-bed semi-detached house in Dublin peaked average housing prices at €400,000, with the REA suggesting that this could be due to the Central Bank easing the restriction on lending for first-time buyers.
REA’s Ed Dempsey confirmed that the average three bed semi-detached house in Clonskeagh has gone from €445,000 last March to €535,000 this year, a rise of 20.2% in a year, and 7% in the quarter.
Nationally, the average housing price costs €209,944 up to 3.5% rise in the previous three months and with the rural areas being the most affected. “There is a desperately poor supply on the market, which means that any property is selling quickly and strongly, with an average selling time of three weeks,” said local REA agent Michael Boyd.
Prices in Louth, Meath, Kildare, Wicklow, Carlow and Laois rose by 2.9% whereas Ireland’s major cities outside the capital experienced a 2.3% rise in the first quarter.
The average semi-detached house in Cork now cost €305,000, €178,000 in Limerick and
€132,000 in Galway, an overall increase of 7.7% since last year.
One of the reasons given for this is the increase in newly-financed buyers coming to the market, prices rose by 5.6% in north and south Dublin in the first quarter of this year.
“Many private vendors are now emerging from negative equity and can afford to make the move from the starter to the second home.However, we need to look at these figures in relation to the market where stock levels are at their lowest nationwide since January 2007.” said REA spokesperson Healy Hynes.
“It will be 2021 at the earliest before it becomes economic to build outside the cities.” said Healy Hynes.
It’s predicted that prices will still be to continue to rise by an average of 5% annually for the next decade unless the chain of supply and demand for housing are met soon.