NEW HOMES SLOW HOUSE PRICE RISES
Supply increase hitting market
THE increase in homes in the capital and commuter counties is having an effect on the price of existing properties, it has been revealed.
The rise in value of second-hand three-bed semi-detached houses in Dublin was just 0.8% in the past three months and was down a little in one suburb.
The REA Average House Price Survey concentrates on actual sales of Ireland’s typical stock home, the three-bed semi, giving an up-to-date picture of the market to the close of last week.
After rising by 12.5% last year, the average cost of a second-hand semi in the capital has increased by just €5,000 so far this year and now stands at €443,000.
The REA’S Barry Mcdonald said: “Where we have new homes on the market, they are definitely having an effect on the existing market as they operate in their own price structure, with buyers prepared to pay a premium for A-rated properties.
“As a result, many of our agents in Dublin and suburban counties such as Meath have reported an increase in time taken to sell the average second-hand property and a slowdown in viewings, especially among first-time buyers.
“As agents, our big challenge is to get vendors to accept the reality of the situation on the ground where sellers are not achieving the sort of inflated asking prices they may expect for properties.
“In my own area, Lucan, we have seen the average three-bed semi drop slightly by -0.6% [€2,000] in the past three months to €352,000, simply because of the selection of available new homes in the area. “In the Celtic Tiger years, prices rose across the board, but in 2018, the system is actually working and the only inflation is in a new homes market that is concentrated in pockets.”
The survey found the average home nationally now costs €232,44 – up 1.5% on the first quarter of the year.
Overall, the average house price across the country rose by 8% during the past 12 months.